What must an Exit franchisee comply with to maintain the protected status of their Protected Territory?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (B) In order to maintain the protected status of the Protected Territory, Franchisee must comply with all of the terms of this Agreement and, in particular, must comply with the provisions of this Agreement regarding maintenance of a specified minimum number of affiliated associate brokers and sales representatives, all of whom must at all times possess either a valid real estate broker's or sales representative's license for the state where the Protected Territory is located (collectively "Sales Representatives" or "Associate Brokers").
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, an Exit franchisee must comply with all the terms of the Franchise Agreement to maintain the protected status of their Protected Territory. Specifically, the franchisee must adhere to the agreement's provisions regarding maintaining a specified minimum number of affiliated associate brokers and sales representatives.
These sales representatives and associate brokers must possess a valid real estate broker's or sales representative's license for the state where the Protected Territory is located. This requirement ensures that the franchisee maintains a sufficient and qualified team to effectively serve the Protected Territory.
It is important to note that the franchisee is not prohibited from listing and selling property or representing clients outside the Protected Territory, provided they comply with state licensing authorities. Other Exit franchisees may also list and sell property or represent clients within the Protected Territory. Therefore, maintaining the minimum number of licensed sales representatives and associate brokers is crucial for retaining the exclusive rights granted by the franchise agreement within the Protected Territory.