Does Exit make any representations about a franchisee's future financial performance?
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, Exit does not make any representations about a franchisee's future financial performance, nor do they provide information on the past financial performance of company-owned or franchised outlets. Exit also does not authorize its employees or representatives to make any such representations, either orally or in writing. This means that prospective franchisees will not receive any financial projections or guarantees from Exit regarding potential earnings.
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 financial history of the business they are considering buying. It is important to note that this is limited to existing outlets being purchased and does not extend to new franchise locations.
The FDD advises that if a prospective franchisee receives any financial performance information or projections of future income from any other source, they should report it to Exit Realty Upper Midwest's management by contacting Cade Pankonin, as well as to the Federal Trade Commission and the appropriate state regulatory agencies. This is to ensure that any unauthorized claims are investigated and do not mislead potential franchisees.