Is attendance at Exit's initial training program mandatory, and if so, under what conditions?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
10 days EXIT charges you $1,000. At the option of EXIT, some or all of the training may be online.
You and any individual who will serve as the administrator of your Franchise office must attend and complete the initial training program to EXIT Realty Upper Midwest and EXIT's satisfaction. Attendance must be at the next scheduled training following your execution of the Franchise Agreement. In addition, within 60 days after completion of the initial training, you must complete and attend the 1-day training course conducted by EXIT Realty Upper Midwest (if offered) at a location within the State of Iowa. There are no charges for the Iowa [insert your state] course or the materials. However, you are responsible for your own lodging, meals and incidental expenses. At the option of EXIT, some or all of the training may be online.
EXIT currently offers an Advanced Broker Course known as the Master Broker Summit. The prerequisite to attending this course is that the Franchisee must have first attended the Franchise Management Training Course. It is recommended that this Advanced Broker Course be attended at least once during the five-year term of the Franchise Agreement.
If you renew your Franchise 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.
Source: Item 11 — FRANCHISOR'S AND SUBFRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–24)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, attendance at the initial training program is mandatory for franchisees and their administrators. Specifically, the FDD states that both the franchisee and any individual who will serve as the administrator of the franchise office must attend and complete the initial training program to Exit's satisfaction. This attendance must occur at the next scheduled training following the execution of the Franchise Agreement. This ensures that those responsible for managing and operating the franchise are properly trained in Exit's methods and standards right from the start.
In addition to the initial training, franchisees in Iowa must also attend a 1-day training course conducted by Exit Realty Upper Midwest within 60 days after completing the initial training. While there are no charges for this Iowa-specific course or its materials, franchisees are responsible for their own lodging, meals, and incidental expenses. Exit also offers an Advanced Broker Course known as the Master Broker Summit, which is recommended to be attended at least once during the five-year term of the Franchise Agreement, with the prerequisite of having attended the Franchise Management Training Course. Furthermore, additional training is required if the Franchise Agreement is renewed.
It is important to note that Exit charges franchisees who sign up for training but fail to attend or cancel with insufficient notice. The fee is $500 if the cancellation occurs with less than 30 days' notice, and $1,000 if the cancellation occurs with less than 10 days' notice. This policy incentivizes franchisees to commit to the training and provide adequate notice if they cannot attend. Exit also retains the option to conduct some or all of the training online, providing flexibility in how the training is delivered. If Exit's next scheduled training program is offered prior to the office opening, the franchisee must attend that program; otherwise, they must attend the next scheduled training program.