From whom did Exit Realty Upper Midwest acquire the rights to sell franchises in Wisconsin?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
in. On April 29th, Subfranchisor acquired the right to sell franchises in the state of Wisconsin from EXIT. On January 2nd, 2018, EXIT Realty Upper Midwest Acquisition LLC an affiliate of Subfranchisor acquired the rights to sell franchises in the state of Illinois from Legacy Success Group LLC. On March 1st, 2021, Subfranchisor acquired the right to sell franchises in the state of Michigan from EXIT.
EXIT has granted the exclusive right to EXIT Realty Upper Midwest to sell and establish EXIT franchises in the State of Wisconsin. EXIT Realty Upper Midwest offers these franchises under its Subfranchise Agreement with EXIT. EXIT Realty Upper Midwest acts as an independent contractor and not as an agent of 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 rights to sell franchises in Wisconsin from Exit. The document specifies that on April 29th, Exit Realty Upper Midwest obtained these rights directly from Exit. This arrangement allows Exit Realty Upper Midwest to offer franchises in Wisconsin under a Subfranchise Agreement with Exit.
This means that prospective franchisees in Wisconsin will have a contractual relationship solely with Exit Realty Upper Midwest, not with Exit itself. Franchisees must look to Exit Realty Upper Midwest for performance under the individual Franchise Agreements. Exit has granted Exit Realty Upper Midwest the exclusive right to sell and establish Exit franchises within Wisconsin.
It is important for potential franchisees to understand that Exit Realty Upper Midwest operates as an independent contractor and not as an agent of Exit. This distinction clarifies that while Exit provides the overall system and brand, Exit Realty Upper Midwest is responsible for the franchise's operation and support within the state of Wisconsin. Franchisees should carefully review the Subfranchise Agreement with Exit Realty Upper Midwest to fully understand their rights and obligations.