To whom is the Exit franchise Renewal Fee payable?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
osure Document and is not refundable.
ITEM 6 OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Computer | $250 | Monthly | Payable by you to |
| Software Fee1 | EXIT | ||
| Renewal Fee | 10% of the then current Initial Franchise Fee for a territory of your size, not to exceed 25% of the initial franchise fee paid for a five (5) year renewal; or 15% of the then current Initial Franchise Fee for a territory of your size not to exceed 37.5% of the initial franchise fee paid for a ten (10) year renewal. | At the time the Franchise Agreement is renewed (5 years). | Payable by you to EXIT Realty Upper Midwest |
| Transaction Fee2 | $50 - $400 per transaction side, not to exceed $2,700 per year, per Sales Representative (pro rated in the first calendar year). | At the time of closing of each sales/rental transaction. | Payable by you to EXIT Realty Upper Midwest and EXIT by electronic funds transfer or by such means as Subfranchisor and EXIT may direct. |
| Regional Development Fee3 | $35 per transaction side, not to exceed $500 per year, per Sales Representative (pro-rated in the first calendar year). | At the time of closing of each sales/rental transaction. | Payable by you to EXIT by electronic funds transfer. |
| Annual Membership4 | $425 All equity holders of Franchisee and individuals with an interest in the Franchise must become EXIT Associates and pay Annual Membership. See Note | Annually, on July 1st | Payable to EXIT. |
| Company Development Fee5 | Equivalent to 10% of the gross commissions generated per year by every Sales Representative to a maximum cumulative fee of $10,000 per calendar year for each Sales Representative (pro-rated in the first calendar year). | At the time of closing of each sales/rental transaction. | Payable by you to EXIT by electronic funds transfer. |
| Transfer Fee6 | Major Transfer. The transfer of a 50% or more interest in the Franchise or 50% or more interest in the equity or voting rights in the entity that owns or controls the Franchise, whether | Upon the Transfer See Note6 | Payable by you |
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Renewal Fee is payable to EXIT Realty Upper Midwest. The Renewal Fee is 10% of the then-current Initial Franchise Fee for a territory of your size, but it will not exceed 25% of the initial franchise fee paid for a five-year renewal. For a ten-year renewal, the Renewal Fee is 15% of the then-current Initial Franchise Fee for a territory of your size, not to exceed 37.5% of the initial franchise fee paid.
This means that when an Exit franchisee renews their agreement, they must pay a fee to EXIT Realty Upper Midwest. The amount of the fee depends on the initial franchise fee and the size of the territory, as well as the length of the renewal term (either five or ten years). The fee is capped at a percentage of the initial franchise fee paid.
Prospective franchisees should note that all fees are nonrefundable, as stated in Item 6. Also, EXIT Realty Upper Midwest or EXIT can change all the fees and memberships during the term of the agreement. Memberships and Fees may increase by up to 7% annually.