What kind of service are Exit Franchisees expected to provide?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
e." Franchisees offer real estate brokerage services to the general public as independently owned and operated entities utilizing the EXIT Trademarks together with a pre-selected "Trade Style" name in conjunction with the unique system and formula of EXIT. The Franchise Agreement is executed between EXIT Realty Upper Midwest (the Subfranchisor) and you (the Franchisee).
The real estate sales business is highly competitive with respect to price, service, location and quality of service. It is often affected by changes in consumer tastes, economic conditions and population patterns. You must anticipate competing with numerous other real estate sales offices offering a wide range of comparably priced services and a wide variety of service formats. The businesses with which you should expect to compete include, in general, national or regional real estate franchise systems and other chains, and independently owned local firms located in the
area of your office that offer similar services to the same or similar customers. Your business will also be affected by its location, the locations of competing real estate sales offices, your financial and managerial capabilities, availability of labor, interest rates, demographic or cultural conditions, and other factors. There is also active competition for management and service personnel.
You may become a Franchisee by entering into a Franchise Agreement with EXIT Realty Upper Midwest, which sets forth your obligations and the obligations of EXIT Realty Upper Midwest. The EXIT Franchise Agreement is attached to this Disclosure Document as Exhibit A-2.
Source: Item 1 — THE FRANCHISOR AND SUBFRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are expected to offer real estate brokerage services to the general public. These services are provided as independently owned and operated entities, utilizing Exit's trademarks in conjunction with a pre-selected "Trade Style" name and Exit's unique system. A key aspect of the franchisee's role is to hire and recruit real estate sales representatives to effectively compete in the real estate brokerage business. The number of sales representatives required is based on the active Realtor population in the franchisee's protected territory, as well as market conditions and competition.
Exit franchisees must possess a valid real estate broker's license in good standing in the state where their franchise is located. This requirement ensures that franchisees are qualified and legally authorized to provide real estate services. The real estate sales business is described as highly competitive, influenced by factors such as price, service quality, location, consumer preferences, economic conditions, and population patterns. Franchisees will compete with national and regional real estate franchise systems, chains, and independently owned local firms offering similar services.
Prospective Exit franchisees should be aware of the various factors that can affect their business, including the location of their office, the presence of competing real estate sales offices, their own financial and managerial capabilities, labor availability, interest rates, and demographic or cultural conditions. Additionally, franchisees must comply with federal, state, and local laws and regulations related to real estate transfer, settlement procedures, and brokerage laws. Exit Realty Upper Midwest recommends that franchisees seek legal counsel to ensure compliance with all applicable laws and regulations in their specific sales territory.