What is the Exit Franchisee responsible for complying with regarding local ordinances?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall at all times hold a valid real estate broker's license and shall maintain good standing and comply with the codes of the local regulatory body that serves its Protected Territory. Further, Franchisee shall comply with all local, state, and federal laws, ordinances, rules and regulations, relating to Franchisee's business, and shall not engage in any activity or practice which results or could reasonably be anticipated to result in litigation or public criticism of Franchisee, EXIT, Subfranchisor, or their respective businesses.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees must comply with all local ordinances, laws, rules, and regulations pertaining to their business. This encompasses all legal requirements at the local, state, and federal levels.
This obligation means that an Exit franchisee must stay informed about and adhere to all applicable laws and regulations, which can vary significantly depending on the location of the franchise. These may include zoning laws, business licensing requirements, and other local ordinances specific to the real estate industry. Failure to comply with these regulations could result in legal penalties, fines, or other repercussions that could negatively impact the franchisee's business operations and reputation.
Furthermore, the franchisee must not engage in any activity that could lead to litigation or public criticism of the franchisee, Exit, or their respective businesses. This requirement underscores the importance of ethical conduct and adherence to legal standards in all business practices. It also highlights the need for franchisees to be mindful of their public image and avoid actions that could damage the reputation of the Exit brand.
In summary, Exit franchisees bear the responsibility of ensuring their business operations are fully compliant with all applicable laws, ordinances, rules, and regulations, while also maintaining high ethical standards to protect the brand's reputation and avoid potential legal issues.