When is the Initial Fee for an Exit Realty Upper Midwest franchise due?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
red to be disclosed in this ITEM.
ITEM 5 INITIAL FEES
When you sign the Franchise Agreement, you must pay EXIT Realty Upper Midwest an Initial Fee that ranges from Seven Thousand Five Hundred Dollars ($7,500) to Twenty-Five Thousand Dollars ($25,000), depending on the geographical size and population (including seasonal residents) of the Protected Territory provided to you with the Franchise Agreement. The Initial Fee for a Franchise Agreement is determined according to the following formula:
- (a) Population in excess of 50,000 persons Fee of $25,000 (high density);
- (b) Population between 15,000 and 50,000 persons if the Protected Territory is more than 2 miles from an area with a population of more than 50,000 – Fee of $15,000 (medium density);
- (c) Population of less than 15,000 persons if the Protected Territory is more than 2 miles from an area with a population of more than 5,000 persons – Fee of $7,500 (rural density).
EXIT Realty Upper Midwest retains 75% of the Initial Fee paid for a Franchise Agreement. EXIT is paid the remaining 25% of the Initial Fee.
The Initial Fee for a Franchise Agreement will be uniformly imposed on all Franchisees
Source: Item 5 — INITIAL FEES (FDD page 12)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the initial franchise fee is due when you sign the Franchise Agreement. The fee ranges from $7,500 to $25,000, depending on the population density of the protected territory granted to the franchisee.
The initial fee is determined by the population within the franchisee's protected territory. A high-density territory, defined as having a population exceeding 50,000, requires a $25,000 fee. A medium-density territory, with a population between 15,000 and 50,000 that is more than 2 miles from an area with a population exceeding 50,000, requires a $15,000 fee. A rural density territory, with a population less than 15,000 that is more than 2 miles from an area with a population exceeding 5,000, requires a $7,500 fee.
Exit Realty Upper Midwest retains 75% of the initial fee, while Exit is paid the remaining 25%. The initial fee is uniformly imposed on all franchisees and is non-refundable. It's important for prospective franchisees to understand these terms, as failure to open the office within 120 days of signing the Franchise Agreement may result in the agreement being voided without a refund of the initial fee.