What license must every Exit Franchise possess?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Every Franchise must possess a bonafide real estate broker's license in good standing under the laws of the state where the Franchise is located. Franchisees are expected to provide first class real estate service to the buying and selling public. The Franchisee has the responsibility to hire and recruit real estate sales representatives and to compete in the real estate brokerage business. The number of sales representatives required under a Franchise Agreement is based on the active Realtor® population in the geographic territory that includes your Protected Territory (see ITEM 12 of this Disclosure Document) and based upon market conditions and competition.
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, every Exit franchise must possess a bonafide real estate broker's license in good standing under the laws of the state where the franchise is located. This requirement ensures that all Exit franchisees are qualified and legally authorized to provide real estate services. Franchisees are expected to provide first-class real estate service to the buying and selling public.
This requirement has significant implications for prospective franchisees. It means that before an individual or entity can operate an Exit franchise, they must meet the licensing requirements for real estate brokers in their state. These requirements typically include completing pre-licensing education, passing a state-administered exam, and meeting certain ethical and professional standards. The cost and time required to obtain a real estate broker's license can vary significantly from state to state, so prospective franchisees should research the specific requirements in their area.
Furthermore, the license must remain in good standing throughout the term of the franchise agreement. This means that franchisees must comply with all applicable laws and regulations, maintain their continuing education requirements, and avoid any disciplinary actions that could result in the suspension or revocation of their license. Failure to maintain a valid real estate broker's license could result in the termination of the franchise agreement.
This licensing requirement is standard practice in the real estate franchise industry, as it helps to ensure that franchisees are qualified to provide real estate services and protect the interests of consumers. Prospective Exit franchisees should carefully consider the licensing requirements in their state and factor in the time and cost of obtaining and maintaining a real estate broker's license when evaluating the franchise opportunity.