To whom is the initial franchise fee paid when signing the Franchise Agreement for an Exit franchise?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
initial investment is presently anticipated and estimated as follows:
| Type of Expenditure | Amount | Method of | When Due | To Whom |
|---|---|---|---|---|
| Payment | Paid | |||
| Initial Franchise Fee1 | $7,500 - $25,000 | Lump Sum | When you sign the Franchise Agreement | EXIT Realty Upper Midwest1 |
| Training Expenses | $2,500-$5,000 | As Incurred | During Training | Airlines, Hotels and Restaurants |
| Real Property – Leased for | $12,000- | As Billed | Prior to | Landlord |
| 12 Months2 | $50,000 | Opening | ||
| Insurance3 | $2,000-$10,000 | As Billed | As Incurred | Insurance Co |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–17)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the initial franchise fee, which ranges from $7,500 to $25,000, is paid to Exit Realty Upper Midwest when you sign the Franchise Agreement. It's important to note that Exit Realty Upper Midwest retains 75% of this initial fee, while Exit receives the remaining 25%.
This payment structure is a key consideration for prospective Exit franchisees. Understanding where the initial franchise fee goes provides transparency into the financial relationship between the franchisee, Exit Realty Upper Midwest, and Exit itself. Franchisees should confirm these percentages and payment allocations during their due diligence process.
It is also important to note that none of the amounts described in Item 7 of the FDD, which includes the initial franchise fee, are refundable from Exit. Franchisees should be aware of this non-refundable policy as they make their investment decisions.