Is Exit Realty Upper Midwest affiliated with the Exit franchisor?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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To simplify the language in this Disclosure Document, "EXIT" means EXIT Realty Corp. International, the Franchisor. "EXIT Realty Upper Midwest," "we," "us" and similar words mean Upper Midwest Realty, Inc., a Minnesota Corporation, doing business as EXIT Realty Upper Midwest, the Subfranchisor. "You" means the individual or entity that purchases the Franchise. If you form a corporation, partnership or other organization, the reference to "You" may include the organization's owners.
Subfranchisor
Subfranchisor is Upper Midwest Realty, Inc., d/b/a EXIT Realty Upper Midwest, a Minnesota corporation with its principal offices located at 20765 Holyoke Ave, Lakeville, MN 55044, ("EXIT Realty Upper Midwest"). EXIT Realty Upper Midwest is a privately held entity and is not affiliated with EXIT. Exhibit B lists the state agencies also authorized to receive service of process. EXIT Realty Upper Midwest has been in the business of selling real estate franchises since August 9th 2013. EXIT Realty Upper Midwest has no predecessors. EXIT Realty Upper Midwest has never offered franchises in other lines of business.
The predecessor of Subfranchisor, EXIT Iowa, LLC located in Lakeville, Minnesota, owned the right to sell EXIT franchises in the states of Iowa, South Dakota and Minnesota from 2006 to 2011. At that time the predecessor conveyed the rights to those states to EXIT. On August 9th, 2013 Subfranchisor acquired the rights to those states from EXIT. On July 12th, 2013 Subfranchisor acquired the rights to sell franchises in the state of North Dakota from Thomas F. Martin. 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.
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 is not affiliated with Exit. The document clarifies the relationship between Exit Realty Corp. International (the Franchisor) and Upper Midwest Realty, Inc., doing business as Exit Realty Upper Midwest (the Subfranchisor). Exit Realty Upper Midwest operates as an independent contractor, possessing the exclusive right to sell and establish Exit franchises in specific states under a Subfranchise Agreement with Exit. Franchisees will have a contractual relationship only with Exit Realty Upper Midwest.
Exit has granted Exit Realty Upper Midwest the exclusive right 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. The franchise described in this Disclosure Document is offered solely by EXIT Realty Upper Midwest. Purchasers of a franchise will have a contractual relationship only with EXIT Realty Upper Midwest and may look only to EXIT Realty Upper Midwest for performance under the individual Franchise Agreements.
This distinction is important for prospective franchisees because it clarifies who they will be contracting with and who is responsible for fulfilling the obligations outlined in the Franchise Agreement. While Exit establishes the overall system and brand, Exit Realty Upper Midwest manages the franchise sales and support within its designated territory. This means franchisees in the Upper Midwest region will primarily interact with and be supported by Exit Realty Upper Midwest rather than the main Exit franchisor.
It is also important to note that Exit Realty Corp. USA has entered into Subfranchise Agreements with EXIT to sell and establish EXIT Franchises in those Regions that had been sold to other Subfranchisors and were subsequently reacquired by EXIT. Ah$um America, Inc. licenses EXIT's trademarks to vendors supplying trademarked products and services to EXIT Franchisees.