What is the general requirement for Sales Representatives regarding laws, rules, and regulations at Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ve shall be responsible for all personal expenses incurred in the course of or incidental to Sales Representative's business operations, including, but not limited to, automobile, travel, disability and other insurance, entertainment, food, lodging, license fees and dues, all income taxes, self-employment taxes, which result or may result from being licensed, engaged in the real estate business and/or associated with EXIT [Trade Name]. At or before the time this Agreement is signed, Sales Representative shall complete and deliver to EXIT [Trade Name] an IRS Form W-9.
- d) Compliance with Laws. Sales Representative shall at all times comply with all laws, rules and regulations, including, but not limited to, those relating to real estate brokerage.
- e) Quality Control. Sales Representative shall abide by the quality controls and safeguards established or enacted by EXIT [Trade Name], Subfranchisor or EXIT, the intent of which is to ensure compliance with applicable laws and standards of the industry. Sales Representative agrees to do everything possible and required to protect and maintain the highest ethical standards in the conduct of Sales Representative's real estate business. Sales Representative shall maintain Sales
Representative's personal appearance and the appearance of Sales Representative's office in a clean and orderly manner. Sales Representative shall always maintain a professional profile on any web or social media sites. The Sales Representative shall provide dependable, efficient, courteous, high quality and professional real estate services to the public, of the same high quality and integrity as other brokers and sales representatives affiliated with EXIT [Trade Name], in order to create and maintain goodwill among the public for the entire EXIT System. Sales Representative shall strictly observe the most current operating procedures established by EXIT [Trade Name], Subfranchisor and EXIT from time to time.
- f) Duty of Loyalty. Sales Representative shall act under a duty of loyalty in support and in furtherance of the EXIT System and shall maintain a proper attitude toward the public, EXIT [Trade Name] and EXIT [Trade Name] Sales Representatives. Sales Representative shall not engage in any acts or activities that may disrupt or discredit the EXIT System, its operations or EXIT [Trade Name], or that may detract from or tend to undermine the growth of the EXIT [Trade Name] organization.
- g) Restrictions on Subsequent Business Activity. Upon termination of this Agreement for any reason, Sales Representative shall immediately refrain from all representations, advertisements, actions and business activities that may mislead others to believe Sales Representatives are affiliated in any way with EXIT [Trade Name].
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Sales Representatives must comply with all applicable laws, rules, and regulations, including those pertaining to real estate brokerage. This requirement ensures that Sales Representatives operate ethically and legally within the real estate industry.
In addition to legal compliance, Exit Sales Representatives must adhere to quality controls and safeguards established by Exit to maintain industry standards. They are expected to uphold high ethical standards in their real estate business and maintain a professional appearance both personally and in their office. This includes maintaining a professional profile on web and social media sites and providing dependable, efficient, courteous, high-quality, and professional real estate services to the public.
Furthermore, Sales Representatives must maintain a valid real estate license and membership in good standing with the local Board of Realtors. They are also required to follow all procedures and use disclosure statements, business contracts, and other forms prescribed by Exit. By adhering to these requirements, Sales Representatives contribute to maintaining goodwill for the Exit system and ensuring consistent service quality across the brand.