What does the FTC's Franchise Rule permit Exit to provide information about?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
The FTC's Franchise Rule permits a Franchisor to provide information about actual or potential financial performance of its franchised and/or Franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the Disclosure Document. Financial performance information that differs from that included in ITEM 19 may be given only if: (1) a Franchisor provides the actual records of an existing outlet you are considering buying; or (2) a Franchisor supplements the information provided in this ITEM 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
We do not make any representations about a Franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to EXIT Realty Upper Midwest's management by contacting Cade Pankonin, 20765 Holyoke Ave, Lakeville, MN 55044, (651) 560-3234, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 31)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the FTC's Franchise Rule allows Exit to provide information regarding the actual or potential financial performance of its franchised and/or company-owned outlets. However, this is contingent upon Exit having a reasonable basis for the information disclosed and including it in the Disclosure Document.
Exit can also provide financial performance information that differs from what is included in Item 19 of the FDD under specific conditions. These conditions include providing the actual records of an existing Exit outlet that a prospective franchisee is considering purchasing. Another condition is supplementing the information provided in Item 19 with additional details, such as potential performance at a specific location or under particular circumstances.
It is important to note that Exit does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. Furthermore, Exit does not authorize its employees or representatives to make such representations, either orally or in writing. If a prospective franchisee receives any financial performance information or projections of future income from other sources, they are advised to report it to Exit Realty Upper Midwest's management, the Federal Trade Commission, and the appropriate state regulatory agencies.