Am I, as an Exit franchisee, restricted from selling real estate services outside of my Protected Territory?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchise Agreement, additional training is required at the time of the renewal.
ITEM 12 TERRITORY
The Franchise Agreement grants you the right to establish a real estate sales office in a specified geographic territory ("Protected Territory") that is described by boundary streets, highways, cities, counties, or other recognizable demarcations and can be further delineated by a map attached as a part of the Franchise Agreement. You are granted the exclusive right to establish an EXIT realty office within the Protected Territory. You are not restricted from selling real estate services outside your Protected Territory. There is no minimum Protected Territory granted, although the Protected Territory is generally as follows: High density – over 50,000 population; Medium density – 20,000-50,000 population and Rural density – less than 5,000 population. You receive exclusivity for the location of your office. You will not receive an exclusive Territory for EXIT listings and/or sales. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Other EXIT franchises may provide real estate services within your Protected Territory. No compensation is paid to you by us or EXIT for real estate sales by other EXIT franchises within your Protected Territory. Similarly, you may sell real estate services outside of your Protected Territory. There are no restrictions on either you or any other EXIT Franchisee from providing real estate services outside a Protected Territory, including no restrictions on your right to use other channels of distribution, such as the internet, telemarketing or direct marketing, to make sales outside the Protected Territory. EXIT, EXIT Realty Upper Midwest and other EXIT Realty Franchisees reserve the right to use other channels of distribution, including the internet, within the Protected Territory, using EXIT's principal trademarks or using different trademarks. Your exclusivity within the Protected Territory relates only to your operation of an EXIT office within the Protected Territory. The Franchise Agreement provides that EXIT Realty Upper Midwest may not establish either a company-owned or franchised outlet, in the Protected Territory, selling the same goods or similar
Source: Item 12 — TERRITORY (FDD pages 24–25)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, you are not restricted from selling real estate services outside of your Protected Territory. The franchise agreement grants you the right to establish a real estate sales office within a defined geographic area, but this does not limit your ability to conduct real estate transactions elsewhere. This means you can serve clients and close deals even if the properties are located outside your primary territory.
This flexibility can be a significant advantage, allowing you to expand your business beyond the immediate vicinity of your office. Exit also places no restrictions on using various channels like the internet, telemarketing, or direct marketing to reach customers and make sales outside your protected territory. However, it's important to note that while you can sell real estate outside your territory, your exclusivity only applies to the physical location of your Exit office within your protected territory.
Other Exit franchises may also provide real estate services within your Protected Territory, and you won't receive compensation for their sales. This means you may face competition from other franchisees, outlets owned by Exit, or other competitive brands, even within your primary territory. Your exclusive rights to a Protected Territory may be terminated or modified by Exit Realty Upper Midwest if you fail to comply with the terms and conditions of the Franchise Agreement, including attaining and retaining the prescribed number of Sales Representatives within the designated period of time.