Can other Exit franchises provide real estate services within my Protected Territory?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
population; Medium density – 20,000-50,000 population and Rural density – less than 5,000 population. You receive exclusivity for the location of your office. You will not receive an exclusive Territory for EXIT listings and/or sales. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Other EXIT franchises may provide real estate services within your Protected Territory. No compensation is paid to you by us or EXIT for real estate sales by other EXIT franchises within your Protected Territory. Similarly, you may sell real estate services outside of your Protected Territory. There are no restrictions on either you or any other EXIT Franchisee from providing real estate services outside a Protected Territory, including no restrictions on your right to use other channels of distribution, such as the internet, telemarketing or direct marketing, to make sales outside the Protected Territory. EXIT, EXIT Realty Upper Midwest and other EXIT Realty Franchisees reserve the right to use other channels of distribution, including the internet, within the Protected Territory, using EXIT's principal trademarks or using different trademarks. Your exclusivity within
Source: Item 12 — TERRITORY (FDD pages 24–25)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees should be aware that while they are granted a Protected Territory, this exclusivity applies only to the physical location of their Exit office. The FDD clearly states that franchisees may face competition from other franchisees within their Protected Territory. This means that other Exit franchises are not restricted from providing real estate services, including listing and selling properties, within your designated area.
Exit franchisees do not receive any compensation from Exit for real estate sales made by other Exit franchises within their Protected Territory. However, franchisees also have the reciprocal right to sell real estate services outside of their own Protected Territory without restriction. This includes utilizing various channels of distribution such as the internet, telemarketing, or direct marketing to reach customers beyond their primary territory.
This arrangement highlights the importance of a strong local marketing strategy and competitive service offerings for Exit franchisees. While the physical office location is protected, success depends on actively pursuing business and building relationships within the community, as other Exit franchises can freely operate and compete for listings and sales in the same geographic area. Franchisees should carefully consider the competitive landscape and develop strategies to differentiate themselves within their Protected Territory.