Does Item 19 include any representations about the past financial performance of company-owned or franchised outlets 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 or the past financial performance of company-owned or franchised outlets. This means that Exit does not provide any data or projections regarding the potential revenue, expenses, or profits that a new franchisee might expect to achieve.
This lack of financial performance representations is a common practice among franchisors. However, Exit does state that if you are purchasing an existing outlet, they may provide you with the actual records of that outlet. This would allow a potential franchisee to review the financial history of that specific location.
The FDD emphasizes that Exit's employees or representatives are not authorized to make any financial performance representations, either orally or in writing. If a prospective franchisee receives any financial performance information or projections from any other source, they are advised to report it to Exit Realty Upper Midwest's management, the Federal Trade Commission, and the appropriate state regulatory agencies. This is to protect potential franchisees from misleading or inaccurate information.