What is the initial franchise fee for an Exit franchise in a medium-density area with a population between 15,000 and 50,000 persons, provided the protected territory is more than 2 miles from an area with a population exceeding 50,000?
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 for a territory with a population between 15,000 and 50,000 people is $15,000, provided the protected territory is more than 2 miles from an area with a population exceeding 50,000. Exit considers this a medium-density territory. This initial fee is not refundable.
Exit Realty Upper Midwest retains 75% of the initial franchise fee, while Exit receives the remaining 25%. This split indicates how the initial investment is distributed between the subfranchisor and the parent company.
The initial fee grants the franchisee the right to establish a real estate sales office in a specified geographic territory. However, the franchisee's exclusivity within the Protected Territory relates only to the operation of an Exit office within the Protected Territory. The franchisee may face competition from other franchisees, from outlets that Exit owns, or from other channels of distribution or competitive brands that Exit controls.