What is the connection between the Exit franchisor's pre-opening obligations (Item 11) and the franchisee's pre-opening purchases (Item 9)?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
igations in these agreements and in other items of this Disclosure Document.**
| Obligation | Section in Franchise Agreement | ITEM in Disclosure Document |
|---|---|---|
| a. Site Selection and Lease | 3 | 11 |
| b. Pre-opening Purchases/Leases | 3 | 5, 6, 7 |
| c. Site Development and other Pre-opening Requirements | 3 | 5, 6, 7 |
| d. Initial and Ongoing Training | 9 | 11 |
| e. Opening | 4 | 11 |
| f. Fees | 5, 6, 7 | 5, 6, 7 |
| g. Compliance with Standards and Policies/Operating Manual | 10 | 11 |
| h. Trademark and Proprietary Information | 8 | 13, 14 |
| i. Restrictions on Products/Services Offered | 9 | 16 |
| j. Warranty and Customer Service Requirements | 9.2 | 11 |
| k. Territorial Development and Sales Quotas | 9 | 12 |
| l. Ongoing Product/Service Purchases | 9.10 | 8 |
| m. Maintenance, Appearance and Remodeling Requirements | 3 | 7 |
| n. Insurance | 9 | 7 |
| o. Advertising | 7, 9 | 6, 11 |
| p. Indemnification | 31 | Not Applicable |
| q. Owner’s Participation/Management/Staffing | 9 | 15 |
| r. Records/Reports | 9,11 | 11 |
| s. Inspections/Audits | 9,11 | 6,11 |
| t. Transfer | 18 | 6, 17 |
| u. Renewal | 5 | 17 |
| v. Post-termination Obligations | 17 | 17 |
| w. Noncompetition Covenants | 21 | 17 |
| x. |
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, referencing various sections of the Franchise Agreement and other Items within the Disclosure Document. Specifically, it connects the franchisee's pre-opening purchases/leases (obligation b) to Item 5, 6, and 7 of the FDD, and the franchisee's site selection and lease (obligation a) to Item 11 of the FDD. This table provides a structured overview of the franchisee's responsibilities and where to find more details about each one.
Item 11 details the franchisor's assistance, advertising support, computer systems, and training programs. Regarding pre-opening obligations, Exit Realty Upper Midwest and Exit will provide franchisees with a copy of prototypical office plans, access to Exit's computer software, and one copy of the Training Manual Vol. 1 Franchise Onboarding Manual. The franchisor also requires the franchisee to attend the next scheduled training program if it is offered before the office opens.
In essence, Item 9 serves as a roadmap for the franchisee, pointing them to the specific sections in the FDD (like Items 5, 6, 7, and 11) that elaborate on their obligations, including pre-opening purchases and site selection. Item 11 then details the franchisor's corresponding responsibilities in assisting the franchisee before they open their Exit franchise. This cross-referencing helps ensure that franchisees understand both their own duties and the support they can expect from the franchisor during the initial setup phase.