Under what conditions can Remax terminate the Franchise Agreement due to failure to maintain insurance?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
missions coverage, REMAX Regional, RE/MAX Holdings, Inc. and/or REMAX, LLC have the right—but not the obligation—to obtain it on your behalf, and that you must promptly reimburse REMAX Regional, RE/MAX Holdings, Inc. and REMAX, LLC for the cost thereof as well as related administrative expenses.
(9) Right to Designate Insurance Agency or Broker.
REMAX Regional reserves the right to designate an insurance agency or broker that you must use, at your expense, to comply with your insurance obligations.
(10) Failure to Maintain Insurance.
Failure to maintain insurance is a material breach of the Agreement and may result in termination of the Franchise Agreement. If you at any time fail or refuse to maintain in effect any insurance coverage required by us, or if we determine that your coverage is inadequate or does not comply with our requirements, or you fail to furnish satisfactory evidence of such insurance, we may, at our option and in addition to any other rights and remedies we may have under this Agreement, obtain such insurance coverage on your behalf, although we are under no obligation to do so. You agree to fully cooperate with us—or our designee—in our efforts to obtain such insurance policies, promptly execute any and all forms or instruments required to obtain any such insurance, allow any inspections of the premises of the Office which are required to obtain such insurance, and reimburse us, on demand, for any costs and premiums we may incur.
E.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, failure to maintain the required insurance coverage is considered a material breach of the Franchise Agreement, which can lead to termination. Remax has the option to obtain the necessary insurance coverage on behalf of the franchisee if the franchisee fails to maintain the required insurance, if Remax determines the coverage is inadequate, if the coverage does not comply with Remax's requirements, or if the franchisee fails to provide satisfactory evidence of insurance.
In the event that Remax opts to obtain insurance coverage for the franchisee, the franchisee is expected to fully cooperate with Remax or their designee in securing the insurance policies. This includes promptly completing any required forms, allowing inspections of the office premises, and reimbursing Remax for any costs and premiums incurred.
Remax has the right to terminate the Franchise Agreement if the franchisee fails to obtain the insurance coverage identified in Subsection 8.D of the agreement. In this case, Remax will provide a 30-day written notice, and if the default is not resolved within that period, the agreement will automatically terminate without further notice.