What are the requirements for Sales Associates' automobile liability insurance policies regarding additional insureds for a Remax franchise?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to the comprehensive general liability and errors and omissions insurance noted above, you will be required to secure endorsements covering each of your Sales Associates under such policies or, in the alternative, you must ensure that each Sales Associate secures such insurance on his or her own behalf. You will also be required to ensure that each Sales Associate in your Office obtains automobile liability insurance covering each vehicle used at any time by the Sales Associate for business purposes and use your best efforts to ensure that each such policy (i) names RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional (and their officers, managers, directors, and employees) as additional insureds; (ii) provides coverage to RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional on a primary and noncontributory basis; (iii) contains a waiver by the insurance carrier of all subrogation rights against RE/MAX Holdings, Inc., REMAX, LLC, RE/MAX Regional and other parties covered by the insurance; (iv) provides the same amount of coverage as you are required to obtain as set forth in number 3 above; and (v) contains a provision that RE/MAX Holdings, Inc., REMAX, LLC and
RE/MAX Regional receive prior written notice of termination, expiration, cancellation or modification of such policy.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 47–53)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees must ensure that each sales associate maintains automobile liability insurance for vehicles used for business purposes. These policies must include coverage for any auto or owned, hired, and non-owned automobiles.
Specifically, the franchisee must use their best efforts to ensure that each sales associate's policy names RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional (including their officers, directors, and employees) as additional insureds. The policy must provide coverage to these entities on a primary and noncontributory basis, meaning that Remax's insurance coverage takes precedence over any other policies they might have.
Additionally, the insurance policy must contain a waiver by the insurance carrier of all subrogation rights against RE/MAX Holdings, Inc., REMAX, LLC, and other parties covered by the insurance. The sales associate's coverage amount must match the franchisee's required coverage, and the policy must include a provision that RE/MAX Holdings, Inc., REMAX, LLC, and RE/MAX Regional receive prior written notice of any termination, expiration, cancellation, or modification of the policy.