Are Exit franchisees required to abide by the rules and regulations established by the Broker's Council?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 adhere to the rules and regulations set forth by the Broker's Council. Specifically, franchisees must join and maintain membership in a Broker's Council established by the Subfranchisor, bearing the expenses themselves. Active participation in the Broker's Council is also mandated.
The Broker's Council convenes regularly, with the frequency determined by the Subfranchisor. The geographical area and meeting locations may change as new franchises are established within the state. Franchisees will receive advance notification of these meetings. Franchisees are obligated to abide by all rules and regulations established by the Broker's Council, including decisions made in accordance with its rules that are directed to Exit franchisees.
The Broker's Council has the authority to 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. Representation in the Broker's Council is limited to two participants at regular meetings, and each franchise in good standing has one vote on decisions considered by the council. This ensures that franchisees have a voice in the rules and regulations that govern their operations within the Exit system.