Does Exit advise the franchisee to determine compliance with federal, state and local laws before executing the agreement?

According to Exit's 2025 Franchise Disclosure Document, Exit requires franchisees to comply with all local, state, and federal laws, ordinances, rules, and regulations relating to the franchisee's business. Additionally, franchisees must maintain good standing and comply with the codes of the local regulatory body that serves its protected territory.

This obligation extends to ensuring that the franchisee does not engage in any activity or practice which results or could reasonably be anticipated to result in litigation or public criticism of the franchisee, Exit, the subfranchisor, or their respective businesses. This requirement emphasizes the importance of franchisees operating their Exit business in accordance with all applicable laws and regulations to avoid legal issues and maintain a positive public image for the brand.

In practical terms, this means a prospective Exit franchisee should proactively consult with legal counsel to understand the specific federal, state, and local laws applicable to operating a real estate brokerage in their protected territory. This includes licensing requirements, advertising regulations, fair housing laws, and any other relevant regulations. By ensuring compliance from the outset, franchisees can minimize the risk of legal issues and contribute to the overall success and reputation of the Exit franchise system.