Is an Exit franchisee required to join a Brokers' Council?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
of [insert number in words] ([insert #]) Sales Representatives, whose primary role is with your franchise by the last day of the thirty sixth (36th) month after the Compliance Date of this Agreement and in each month thereafter during the remainder of this Agreement.
9.9. Brokers' Council
Franchisee shall join, maintain membership at its own expense, and actively participate in a Brokers' Council, as established by Subfranchisor. This Broker's Council will meet on a regular basis, as determined by Subfranchisor. The geographical area and meeting location of each Broker's Council may change, from time to time, based on the establishment of franchises throughout the State. Notifications of these meetings will be sent, in advance, to each Franchise. Franchisee shall abide by all rules and regulations as may be established by the Broker's Council,
including any decision reached in accordance with the rules and regulations of the Broker's Council directed to EXIT franchisees. The Broker's Council may establish membership fees and other charges in order to be an active participant in the Broker's Council. The establishment of rules, procedures and membership fees and charges shall be determined by at least 2/3 of the Franchisee members and shall not be calculated on a per transaction basis. Representation in the Broker's Council will be limited to two (2) participants at regular meetings. Each Franchise, in good standing, shall have one (1) vote with respect to decisions considered by the Broker's Council.
**9.10.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are required to join and actively participate in a Brokers' Council if one is established by the Subfranchisor. The franchisee is responsible for the expenses associated with maintaining this membership.
The Brokers' Council will meet regularly, with the frequency determined by the Subfranchisor. The location and geographical area covered by each council may change as new Exit franchises are established within the state. Franchisees will receive advance notification of these meetings.
Exit franchisees must adhere to all rules and regulations set by the Brokers' Council, including decisions made according to its rules. The Brokers' Council can establish membership fees and other charges for active participation, determined by at least two-thirds of the franchisee members, but these fees cannot be calculated on a per-transaction basis. Each franchise in good standing has one vote on decisions, with representation limited to two participants at regular meetings.
In the event of any transfer of the Exit franchise, all outstanding amounts due to Exit, the Subfranchisor, or the Brokers' Council become immediately payable.