After the Exit franchise agreement terminates, can I operate a real estate brokerage business within a 10-mile radius of my former Exit office if the agreement expired at the end of its term?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) within a ten (10) mile radius of Franchise's office own, operate, lease, franchise, conduct or engage in, be connected with, have any interest in or assist any person or entity engaged in any real estate brokerage business, provided the foregoing shall not apply if this Agreement expired at the end of its term.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, if the franchise agreement expires at the end of its term, a franchisee is not restricted from operating a real estate brokerage business within a ten (10) mile radius of the former Exit office. However, this exception only applies if the agreement expires at the end of its term.
This means that if the Exit franchise agreement simply runs its course to the end date, the franchisee is free to start a competing real estate business nearby without violating the non-compete terms. This is a significant benefit for franchisees who successfully complete their term and wish to continue in the real estate business independently.
However, if the Exit franchise agreement is terminated early for any reason (such as a default by the franchisee), the franchisee would be subject to the standard non-compete restrictions. This includes being prohibited from operating a real estate brokerage business within a 10-mile radius of the former Exit office for a period of one (1) year following the termination, assignment or expiration of this Agreement.