According to the FDD, what does the term 'EXIT' refer to regarding the Exit franchise?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
To simplify the language in this Disclosure Document, "EXIT" means EXIT Realty Corp. International, the Franchisor. "EXIT Realty Upper Midwest," "we," "us" and similar words mean Upper Midwest Realty, Inc., a Minnesota Corporation, doing business as EXIT Realty Upper Midwest, the Subfranchisor. "You" means the individual or entity that purchases the Franchise. If you form a corporation, partnership or other organization, the reference to "You" may include the organization's owners.
Source: Item 1 — THE FRANCHISOR AND SUBFRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the term "EXIT" refers to EXIT Realty Corp. International, which is the franchisor. The document clarifies this definition to simplify the language used throughout the FDD, ensuring that when "EXIT" is mentioned, it is referring to the main franchising entity. This is important for prospective franchisees to understand, as it establishes who the primary franchisor is in the Exit franchise system.
Furthermore, the FDD distinguishes between the franchisor, EXIT Realty Corp. International, and the subfranchisor, EXIT Realty Upper Midwest. The subfranchisor is the entity that actually sells the franchises and enters into the Franchise Agreement with the franchisee. This distinction is crucial because the franchisee's contractual relationship is primarily with the subfranchisor, EXIT Realty Upper Midwest, and not directly with EXIT Realty Corp. International.
Understanding the roles of both EXIT Realty Corp. International and EXIT Realty Upper Midwest is essential for franchisees. While EXIT Realty Corp. International developed the EXIT System and owns the trademarks, EXIT Realty Upper Midwest is responsible for providing support and services to franchisees within their assigned geographical territory. This division of responsibilities clarifies who franchisees should contact for different aspects of their business operations and support needs.