factual

From whom did Exit Realty Upper Midwest acquire the right to sell franchises in Michigan?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

On March 1st, 2021, Subfranchisor acquired the right to sell franchises in the state of Michigan from EXIT.

Source: Item 1 — THE FRANCHISOR AND SUBFRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–8)

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, Exit Realty Upper Midwest acquired the right to sell franchises in the state of Michigan from Exit. This acquisition occurred on March 1, 2021. This means that if you are looking to purchase an Exit franchise in Michigan, you would be dealing directly with Exit Realty Upper Midwest, not Exit Realty Corp. International.

Exit Realty Upper Midwest, as the subfranchisor, has specific rights within the state of Michigan. As a potential franchisee, it is important to understand that your contractual relationship will be solely with Exit Realty Upper Midwest. You must look to them for performance under the franchise agreement. Exit Realty Upper Midwest is responsible for providing support and services to franchisees within their assigned geographical territory.

It is also important to note that Exit Realty Upper Midwest is an independent contractor and not an agent of Exit. This distinction clarifies that while Exit sets the overall franchise system, Exit Realty Upper Midwest operates independently in managing and selling franchises within its designated territory. This independence can affect the specific support and services you receive as a franchisee in Michigan.

Prospective franchisees should carefully review the Franchise Agreement (Exhibit A-2 in the FDD) to fully understand the obligations and responsibilities of both the franchisee and Exit Realty Upper Midwest. Understanding this relationship is crucial for a successful franchise operation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.