Does Exit provide prototypical office plans and specifications that franchisees can adapt?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
not required to provide you with any assistance.
1. Pre-Opening Obligations.
Before you open your Franchise, EXIT Realty Upper Midwest and EXIT will provide the following assistance to you:
(1) Provide you with a copy of our prototypical office plans and specifications, which you may adapt for your own use. See Franchise Agreement, Sections 9.11(a) and 12.1.
(2) Provide you with access to EXIT's computer software. See Franchise Agreement, Section 9.14.
(3) Provide you with one (1) copy of the Training Manual Vol. 1 Franchise Onboarding Manual that covers EXIT's operating policies, marketing and advertising policies and standards, promotional programs and other matters. The Table of Contents of the Franchise Onboarding Manual is attached to this Disclosure Document as Exhibit C. See Franchise Agreement, Section 12.1. If EXIT's next scheduled training program is offered prior to your office opening, you must attend that program. Otherwise, you must attend the next scheduled training program. EXIT's initial training program is offered twice a year. Some or all of the training may be done online.
(4) You must select your office site, subject to EXIT Realty Upper Midwest's review and consent, and secure fee or leasehold title for the site. Generally, office sites that are leased are not owned by EXIT Realty Upper Midwest. EXIT Realty Upper Midwest may consult with you regarding site selection, but you are ultimately responsible for locating and obtaining an acceptable site.
Source: Item 11 — FRANCHISOR'S AND SUBFRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–24)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, as part of the pre-opening obligations, Exit Realty Upper Midwest and Exit will provide franchisees with a copy of their prototypical office plans and specifications. Franchisees are allowed to adapt these plans for their own use. This is a benefit to franchisees as it provides a starting point for office design and layout, potentially saving time and resources in the initial setup phase.
However, franchisees are ultimately responsible for selecting their office site, subject to Exit Realty Upper Midwest's review and consent, and securing the site either through fee or leasehold title. Exit Realty Upper Midwest may offer consultation regarding site selection, but the final responsibility rests with the franchisee. This means that while Exit provides initial plans, franchisees need to ensure the chosen site is suitable and meets Exit's standards.
It's important to note that Exit Realty Upper Midwest considers factors such as competition, market analysis, proximity to other real estate offices, building suitability, traffic, and the nature of adjacent businesses when evaluating a proposed site. Additionally, the office site must be within the franchisee's protected territory. Failure to select an office site or open the office within 120 days after signing the Franchise Agreement may result in Exit Realty Upper Midwest declaring the agreement null and void, without any refund of the initial fee or other amounts paid.