Under what conditions might a Remax Regional require a commercial Remax franchisee to obtain additional insurance coverage in additional amounts?

According to Remax's 2025 Franchise Disclosure Document, if a franchisee is operating a commercial franchise, the Remax Regional has the discretion to require additional insurance coverage in additional amounts. This means that the specific circumstances under which this might occur are not explicitly defined in the FDD, but the Remax Regional maintains the right to impose such requirements.

This clause provides Remax Regional with flexibility to adapt insurance requirements based on the perceived risk and operational needs of individual commercial franchises. It is important to note that this is at the Remax Regional's discretion, implying that the decision is not automatic but rather based on a case-by-case evaluation.

For a prospective Remax franchisee, especially one considering a commercial franchise, it is crucial to discuss potential scenarios that might trigger this additional insurance requirement with the Remax Regional. Understanding the factors that influence this decision can help in better financial planning and risk management. Franchisees should inquire about typical situations where additional coverage has been mandated in the past and the potential costs associated with such coverage to fully prepare for the financial implications of operating a commercial Remax franchise.