As a condition of transfer, does Exit Realty Upper Midwest require an assignment to be signed?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| l. EXIT Realty Upper Midwest’s approval of transfer by Franchisee | 18 | EXIT Realty Upper Midwest has the right to approve all transfers but will not unreasonably withhold approval. |
|---|---|---|
| m. Conditions for EXIT Realty Upper Midwest approval of transfer | 18 | New Franchisee qualifies, transfer fee (10% of the then current initial franchise fee, not to exceed 25% of the Initial Franchise fee paid) paid, purchase agreement approved, training arranged, Assignment signed and current Franchise Agreement signed by new Franchisor or Franchisee (also see the non-competition section below). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 27–31)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit Realty Upper Midwest requires a signed assignment as a condition for transfer approval. Specifically, the FDD outlines several conditions that must be met for Exit Realty Upper Midwest to approve the transfer of a franchise.
These conditions include ensuring the new franchisee meets the necessary qualifications, payment of a transfer fee (which is 10% of the current initial franchise fee, but cannot exceed 25% of the initial franchise fee originally paid), approval of the purchase agreement, arrangement of training for the new franchisee, and the signing of an assignment. Additionally, the new franchisor or franchisee must sign the current Franchise Agreement.
This requirement ensures that Exit maintains control over who becomes a franchisee and that certain standards are upheld during the transfer process. For a prospective franchisee looking to sell their Exit franchise in the future, it's important to understand these conditions to ensure a smooth and approved transfer. They should also be aware of the transfer fee and other potential costs associated with the transfer.