What ethical standards must an Exit franchisee maintain in the conduct of its real estate service?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (A) At all times, Franchisee shall maintain high ethical standards in the conduct of its real estate service, shall maintain its office in a clean and orderly manner, and shall provide efficient, courteous and high-quality real estate service to the public, of the same high quality and distinguishing characteristics as provided at Affiliates' offices, so that the real estate service operated under this Agreement will help to create and maintain goodwill among the public for the System on an international basis.
- (B) Franchisee, or if Franchisee is an entity, an officer, member, director, partner or other person named as the real estate broker of record, shall devote substantially full time efforts to Franchisee's business to be pursued under this Agreement.
- (C) Franchisee shall join and maintain active, full membership in the applicable Multiple Listing Services, associations of real estate brokers as is normal and customary for real estate brokers in the Protected Territory.
- (D) Franchisee, or if Franchisee is an entity, all equity holders of the entity, shall become EXIT Associates and complete the EXIT Associate Profile, attached as Schedule 5 to this agreement. If Franchisee or any of its equity holders were "sponsored" into the EXIT System, prior to buying this Franchise, that Sponsorship will not change. If Franchisee or any of its equity holders were not sponsored into the EXIT System prior to purchasing this Franchise, those persons will be named as their own Sponsor. If a "self-sponsored" equity holder of the Franchisee terminates its equity holder relationship with the Franchisee, but stays in the EXIT System, the Sponsorship of that equity holder shall be transferred to the Subfranchisor.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees must maintain high ethical standards in their real estate service. This includes maintaining a clean and orderly office and providing efficient, courteous, and high-quality real estate service to the public. The aim is to ensure the services are of the same high quality and distinguishing characteristics as other Exit offices, fostering goodwill for the Exit system internationally.
To meet these standards, the franchisee, or a designated officer if the franchisee is an entity, must devote substantially full-time efforts to the Exit business. Franchisees are also required to join and maintain active membership in relevant Multiple Listing Services and associations of real estate brokers customary in their protected territory. This ensures they are integrated into the local real estate community and adhere to local standards.
Furthermore, franchisees and their equity holders must become Exit Associates and complete the Exit Associate Profile. Compliance with these ethical and operational standards is crucial, as failure to maintain them could lead to breaches of the franchise agreement. Exit and its subfranchisors also maintain supervision over franchisees to ensure compliance with the system's standards and provide guidance in managing operations.