What factors does Exit Realty Upper Midwest consider when evaluating a proposed site?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) You must select your office site, subject to EXIT Realty Upper Midwest's review and consent, and secure fee or leasehold title for the site. Generally, office sites that are leased are not owned by EXIT Realty Upper Midwest. EXIT Realty Upper Midwest may consult with you regarding site selection, but you are ultimately responsible for locating and obtaining an acceptable site. In evaluating a proposed site, EXIT Realty Upper Midwest considers such factors as competition and market analysis, proximity to other real estate offices and other potential sources of customers, building suitability, traffic and transportation, the nature and extent of adjacent businesses, the comparative advantages of a particular market, and other factors selected by EXIT Realty Upper Midwest. Your office site must be within your Protected Territory (see Item 12 below). See Franchise Agreement, Section 3.1(A).
- (5) If you have not selected an office site, if you and EXIT Realty Upper Midwest cannot agree on a site, or if you have not opened your office within 120 days after you sign a Franchise Agreement, EXIT Realty Upper Midwest may declare the Franchise Agreement null and void, without the return of any Initial Fee or other amount paid to us. See Franchise Agreement, Section 3.1(B).
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, when evaluating a proposed office site, Exit Realty Upper Midwest considers several factors. These include competition and market analysis to understand the local real estate landscape. The proximity to other real estate offices and potential customer sources is also evaluated to ensure accessibility and visibility. Building suitability is assessed to confirm the site meets operational needs. Traffic and transportation considerations are taken into account to ensure ease of access for clients and agents. The nature and extent of adjacent businesses are reviewed to understand the surrounding commercial environment. Finally, Exit Realty Upper Midwest considers the comparative advantages of a particular market and other factors they deem relevant. The office site must be within the franchisee's protected territory.
It is important to note that while Exit Realty Upper Midwest may consult with the franchisee regarding site selection, the franchisee is ultimately responsible for locating and securing an acceptable site. This means the franchisee will need to conduct their own due diligence and present potential locations to Exit Realty Upper Midwest for approval. This process ensures that the franchisee has a suitable location that aligns with Exit's brand standards and market strategy.
Prospective franchisees should be aware that there is a deadline for securing a site and opening the office. If a franchisee has not selected an office site, if the franchisee and Exit Realty Upper Midwest cannot agree on a site, or if the franchisee has not opened their office within 120 days after signing the Franchise Agreement, Exit Realty Upper Midwest has the right to declare the Franchise Agreement null and void. In such a case, the initial fee or any other amount paid to Exit will not be returned. This underscores the importance of starting the site selection process promptly and working closely with Exit Realty Upper Midwest to find a mutually agreeable location within the specified timeframe.