Does the Exit franchise agreement impose restrictions on the goods or services a franchisee may offer?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to your state and local laws, you, or your approved designee, must be a licensed real estate broker under the laws of the state within which your office will be located. You must use your office solely for the operation of an EXIT Franchise. You must not use or permit the use of the premises for any other purpose or activities, at any time, without first obtaining our written consent.
You have complete discretion as to the prices to be charged to customers for the offer and sale of any goods and services.
We do not impose any other restrictions in the Franchise Agreement or otherwise, as to the goods or services which you may offer or sell or as to the customers to whom you may offer or sell.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 27)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, there are some restrictions on the goods and services a franchisee can offer. To operate an Exit franchise, the franchisee or their approved designee must be a licensed real estate broker in the state where their office is located. The franchisee must operate the Exit franchise from their office and cannot use the premises for any other purpose without written consent from Exit.
Exit does not impose any other restrictions in the Franchise Agreement or otherwise, as to the goods or services which you may offer or sell or as to the customers to whom you may offer or sell. However, if a franchisee desires to offer services other than those that are part of the Exit system, such as property management, these services must be offered through a separate legal entity and not through the Exit franchise itself.
While Exit allows franchisees complete discretion over pricing, franchisees are restricted from engaging in any business or using Exit's proprietary marks or system for purposes not outlined in the agreement without prior written consent. This includes a covenant not to compete, which prevents franchisees from being involved in any real estate business that is competitive with Exit during the term of the agreement. These restrictions ensure that the Exit brand and system are protected, and that franchisees focus on providing real estate services as defined within the franchise agreement.