Does Item 19 include any representations about a franchisee's future financial performance for Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not make any representations about a Franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to EXIT Realty Upper Midwest's management by contacting Cade Pankonin, 20765 Holyoke Ave, Lakeville, MN 55044, (651) 560-3234, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 31)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Item 19 explicitly states that Exit does not make any representations about a franchisee's future financial performance. This means Exit does not provide any projections or guarantees regarding potential income, revenue, or profits that a franchisee might achieve. This also applies to the past financial performance of company-owned or franchised outlets.
This lack of financial performance representations is a common practice in franchising. Exit also does not authorize its employees or representatives to make any such representations, either orally or in writing. This is to prevent franchisees from relying on potentially misleading or inaccurate information.
However, if a prospective franchisee is purchasing an existing Exit outlet, Exit may provide the actual records of that specific outlet. This allows the potential franchisee to review the historical financial performance of that particular business. The FDD also advises that if a prospective franchisee receives any other financial performance information or projections, they should report it to Exit Realty Upper Midwest's management, the Federal Trade Commission, and the appropriate state regulatory agencies.