What memberships are Exit franchisees required to maintain?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (C) Franchisee shall join and maintain active, full membership in the applicable Multiple Listing Services, associations of real estate brokers as is normal and customary for real estate brokers in the Protected Territory.
- (D) Franchisee, or if Franchisee is an entity, all equity holders of the entity, shall become EXIT Associates and complete the EXIT Associate Profile, attached as Schedule 5 to this agreement. If Franchisee or any of its equity holders were "sponsored" into the EXIT System, prior to buying this Franchise, that Sponsorship will not change. If Franchisee or any of its equity holders were not sponsored into the EXIT System prior to purchasing this Franchise, those persons will be named as their own Sponsor. If a "self-sponsored" equity holder of the Franchisee terminates its equity holder relationship with the Franchisee, but stays in the EXIT System, the Sponsorship of that equity holder shall be transferred to the Subfranchisor.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees must maintain specific memberships to operate their business. The franchisee is required to join and maintain active, full membership in the applicable Multiple Listing Services and associations of real estate brokers. These memberships must be normal and customary for real estate brokers in the franchisee's protected territory.
In addition to these memberships, the franchisee, or if the franchisee is an entity, all equity holders of the entity, must become Exit Associates and complete the Exit Associate Profile. If the franchisee or any of its equity holders were sponsored into the Exit System before buying the franchise, that sponsorship will not change. If they were not sponsored prior to purchasing the franchise, they will be named as their own sponsor.
If a self-sponsored equity holder terminates their relationship with the franchisee but remains in the Exit System, their sponsorship will be transferred to the subfranchisor. These membership and participation requirements ensure that Exit franchisees are integrated into the real estate community and the Exit System, maintaining standards and benefiting from network resources.