What is the initial franchise fee for an Exit franchise in a high-density area with a population exceeding 50,000 persons?
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 varies based on the population density of the protected territory. For a high-density territory with a population exceeding 50,000 people, the initial franchise fee is $25,000. This fee is payable when the Franchise Agreement is signed.
Exit Realty Upper Midwest retains 75% of the initial franchise fee, while Exit receives the remaining 25%. This allocation is consistent across all franchise agreements. The initial fee is uniformly imposed on all franchisees and is non-refundable.
Prospective franchisees should consider the population density of their desired territory, as this directly impacts the initial franchise fee. Securing a high-density territory requires a larger initial investment compared to medium or rural density territories. This initial fee covers the right to establish an Exit real estate sales office within the protected territory.