What happens if Exit Realty Upper Midwest does not deliver the Disclosure Document on time?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
If EXIT Realty Upper Midwest offers you a Franchise, it must provide this Disclosure Document to you 14 calendar days before you sign a binding agreement with, or make a payment to, EXIT Realty Upper Midwest or an affiliate in connection with the proposed Franchise sale.
If EXIT Realty Upper Midwest does not deliver this Disclosure Document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580 and the state agency listed on Exhibit B.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, if Exit Realty Upper Midwest fails to provide the disclosure document within the mandated timeframe, or if the document contains false, misleading, or omits material information, it may constitute a violation of both federal and state laws.
In such a case, the document advises that the incident should be reported to the Federal Trade Commission (FTC) in Washington, D.C., as well as to the relevant state agency listed in Exhibit B of the FDD. This measure ensures that potential franchisees are protected by enabling them to report any discrepancies or failures in disclosure, which are critical for making informed investment decisions.
This requirement is in place to protect prospective franchisees by ensuring they have adequate time and accurate information to evaluate the franchise opportunity before committing to a binding agreement or making any payments. The FTC and state agencies oversee franchise regulations and can investigate and take action against franchisors who do not comply with disclosure laws, which may include penalties, fines, or other legal remedies.