What is the minimum requirement for the number of affiliated associate brokers and sales representatives an Exit franchisee must maintain to keep their Protected Territory status?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
representation of clients at any location within the state. Likewise, other EXIT franchisees may list and sell property or represent clients domiciled in the Protected Territory.
- (B) In order to maintain the protected status of the Protected Territory, Franchisee must comply with all of the terms of this Agreement and, in particular, must comply with the provisions of this Agreement regarding maintenance of a specified minimum number of affiliated associate brokers and sales representatives, all of whom must at all times possess either a valid real estate broker's or sales representative's license for the state where the Protected Territory is located (collectively "Sales Representatives" or "Associate Brokers").
2.4. Single Franchise
Franchisee has no option, right of first refusal, or similar right to acquire an EXIT franchise for any other location absent a written agreement with Subfranchisor.
2.5. Franchisee Business
Franchisee shall not directly or indirectly engage in any business or otherwise use the Proprietary Marks or any part of the System for any purpose or in any manner not contemplated in this Agreement, without the prior written consent of Subfranchisor and Franchisor. If Franchisee desires to offer any services other than those services that
are part of the System (e.g., property management services), such services may be offered through a separate legal entity but shall not be offered through Franchisee.
3. INITIAL OFFICE; RELOCATION
**3.1.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, maintaining the protected status of a franchisee's territory depends on complying with all terms of the agreement, especially maintaining a specified minimum number of affiliated associate brokers and sales representatives. These representatives must possess a valid real estate broker's or sales representative's license for the state where the protected territory is located. The FDD specifies that the exact minimum numbers are to be inserted in the agreement.
Specifically, the franchisee must have a minimum number of sales representatives whose primary role is with the franchise by certain deadlines. The agreement requires a minimum number of sales representatives by the end of the 12th month after the compliance date, another minimum by the end of the 24th month, and a final minimum number by the end of the 36th month. This final number must be maintained each month thereafter for the remainder of the agreement.
Prospective Exit franchisees should carefully review their Franchise Agreement to understand the specific minimum number of sales representatives required at each stage. They should also consider the time it will take to recruit and onboard these representatives to ensure compliance with the agreement's terms and maintain their protected territory status. Failure to meet these requirements could jeopardize the franchisee's exclusive rights within their territory.