Is the Exit franchisee's office site required to be within their Protected Territory?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) You must select your office site, subject to EXIT Realty Upper Midwest's review and consent, and secure fee or leasehold title for the site. Generally, office sites that are leased are not owned by EXIT Realty Upper Midwest. EXIT Realty Upper Midwest may consult with you regarding site selection, but you are ultimately responsible for locating and obtaining an acceptable site. In evaluating a proposed site, EXIT Realty Upper Midwest considers such factors as competition and market analysis, proximity to other real estate offices and other potential sources of customers, building suitability, traffic and transportation, the nature and extent of adjacent businesses, the comparative advantages of a particular market, and other factors selected by EXIT Realty Upper Midwest. Your office site must be within your Protected Territory (see Item 12 below). See Franchise Agreement, Section 3.1(A).
- (5) If you have not selected an office site, if you and EXIT Realty Upper Midwest cannot agree on a site, or if you have not opened your office within 120 days after you sign a Franchise Agreement, EXIT Realty Upper Midwest may declare the Franchise Agreement null and void, without the return of any Initial Fee or other amount paid to us. See Franchise Agreement, Section 3.1(B).
Source: Item 11 — FRANCHISOR'S AND SUBFRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–24)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a franchisee's office site must be within their protected territory. Before a franchisee can select their office site, Exit Realty Upper Midwest must review and consent to the site. While Exit Realty Upper Midwest may consult with the franchisee regarding site selection, the franchisee is ultimately responsible for locating and obtaining an acceptable site.
In evaluating a proposed site, Exit Realty Upper Midwest considers factors such as competition and market analysis, proximity to other real estate offices and other potential sources of customers, building suitability, traffic and transportation, the nature and extent of adjacent businesses, the comparative advantages of a particular market, and other factors selected by Exit Realty Upper Midwest.
If a franchisee has not selected an office site, if the franchisee and Exit Realty Upper Midwest cannot agree on a site, or if the franchisee has not opened their office within 120 days after signing the Franchise Agreement, Exit Realty Upper Midwest may declare the Franchise Agreement null and void, without the return of any Initial Fee or other amount paid to them.