For Exit franchises, what is the transfer fee for transferring a franchise in one or more transfers?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
to EXIT Realty Upper Midwest at the time of the Transfer. |
| in one or more transfers— transfer fee equal to 10% of the then-current Initial Fee (not to exceed 25% of the Initial Franchise Fee paid). | |||
|---|---|---|---|
| Minor Transfer. Transfer of less than a 50% interest of the Franchise, or less than 50% interest in the equity or voting rights in the entity that owns or controls the Franchise—$500. See Note6 | |||
| Late Fee | 5% of the late payment. | If a payment is more than 30 days late. | Payable by you to EXIT and EXIT Realty Upper Midwest |
| Interest | Past due amounts are subject to interest at the prime interest rate plus 5%, or the highest contract annual percentage rate allowed by applicable law, whichever is less. | Commencing 30 days after payment is late. |
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the transfer fee for a major transfer, defined as transferring 50% or more interest in the franchise, or 50% or more interest in the equity or voting rights of the entity that controls the franchise, is equal to 10% of the then-current Initial Fee. This transfer fee will not exceed 25% of the initial franchise fee paid. This fee is payable to EXIT Realty Upper Midwest at the time of the transfer.
In contrast, a minor transfer, which involves transferring less than a 50% interest in the franchise or the entity controlling it, incurs a fixed fee of $500. However, if the transfer is from one person to an entity controlled by the same person, there is no transfer fee.
It is important to note that all fees listed in the Franchise Disclosure Document are nonrefundable and are subject to change by EXIT Realty Upper Midwest or EXIT during the term of the agreement. Additionally, memberships and fees may increase by up to 7% annually, as detailed in Section 16 of the EXIT Formula.