Does Exit make any representations about the past financial performance of company-owned or franchised outlets?
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 or 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 specific financial performance data from Exit regarding existing locations.
However, if a prospective franchisee is purchasing an existing Exit outlet, Exit may provide the actual records of that specific outlet. This is a common practice in franchising, allowing potential buyers to review the financial history of the business they are considering acquiring.
The FDD advises that if a prospective franchisee receives any other financial performance information or projections of future income, they should report it to Exit Realty Upper Midwest's management, the Federal Trade Commission, and the appropriate state regulatory agencies. This warning suggests that franchisees should be cautious about any financial claims made outside of the official FDD and verified records.