Does the Exit franchise offering require a Franchise Agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
You may become a Franchisee by entering into a Franchise Agreement with EXIT Realty Upper Midwest, which sets forth your obligations and the obligations of EXIT Realty Upper Midwest. The EXIT Franchise Agreement is attached to this Disclosure Document as Exhibit A-2. EXIT Realty Upper Midwest and you are the only two parties to the Franchise Agreement. The fee structure is outlined in the EXIT Formula (part of the Franchise Agreement).
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, becoming a franchisee requires entering into a Franchise Agreement with EXIT Realty Upper Midwest. This agreement outlines the obligations of both the franchisee and EXIT Realty Upper Midwest. The Exit Franchise Agreement is included as Exhibit A-2 in the FDD. The fee structure is detailed within the EXIT Formula, which is a part of the Franchise Agreement.
This agreement is legally binding and crucial for outlining the responsibilities and expectations of both parties. It ensures that the franchisee understands their duties and what they can expect from Exit Realty Upper Midwest. The agreement also covers aspects such as training, operational standards, and the use of Exit's trademarks and systems.
Prospective franchisees should carefully review the Franchise Agreement (Exhibit A-2) and the EXIT Formula to fully understand their obligations, the fees involved, and the support they will receive from EXIT Realty Upper Midwest. Consulting with an attorney to review the agreement is advisable to ensure a clear understanding of all terms and conditions before committing to the franchise.