Can Exit Realty Upper Midwest assign the franchise contract to another party?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| l. EXIT Realty Upper Midwest’s approval of transfer by Franchisee | 18 | EXIT Realty Upper Midwest has the right to approve all transfers but will not unreasonably withhold approval. |
|---|---|---|
| m. Conditions for EXIT Realty Upper Midwest approval of transfer | 18 | New Franchisee qualifies, transfer fee (10% of the then current initial franchise fee, not to exceed 25% of the Initial Franchise fee paid) paid, purchase agreement approved, training arranged, Assignment signed and current Franchise Agreement signed by new Franchisor or Franchisee (also see the non-competition section below). |
| n. EXIT Realty Upper Midwest’s | Not Applicable | |
| right of first refusal to acquire | ||
| your business | ||
| o. EXIT Realty Upper Midwest’s | Not Applicable | |
| option to purchase your | ||
| business | ||
| p. Your death or disability | 16 | Treated as a non-curable breach. See Section 18.4 for transferability provisions. |
| q. Non-competition covenants | 21 | Subject to state law, no involvement in |
| during the term of the | competing business without | |
| Franchise | Subfranchisor’s prior written consent. | |
| r. Non-competition covenants | 21 | Subject to state law, no competing |
| after the Franchise is | business similar to EXIT for 1 year within | |
| terminated or expires. | the area licensed by us from EXIT. | |
| s. Modification of the Agreement | 28 | Fees are subject to change by Franchisor. The Manuals are subject to change. |
| t. Integration/merger clause | 28 | Only the terms of the Agreement are binding (subject to state law). Any other promises may not be enforceable. Any representations or promises outside of this Disclosure Document and the Franchise Agreement may not be enforceable. |
| u. Dispute resolution by | 25 | Subject to state law, all disputes must be |
| arbitration or mediation | litigated in Lakeville, MN | |
| v. Choice of forum | 25 | Subject to applicable state law, all disputes must be litigated Lakeville, MN |
| w. Choice of law | 25 | Subject to applicable state law, Minnesota |
| g. | "Cause" defined – defaults which can be cured | 16 |
| h. | "Cause" defined – defaults which cannot be cured | 16 |
| i. | Your obligations on termination/non-renewal | 17, 21.2 |
| j. | Assignment of contract by EXIT Realty Upper Midwest | 18 |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 27–31)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Item 17 addresses the assignment of the franchise contract by Exit Realty Upper Midwest. The table included in Item 17 outlines various provisions related to the franchise agreement, including assignment of the contract by Exit Realty Upper Midwest.
Specifically, the table indicates that the franchise agreement covers the assignment of the contract by Exit Realty Upper Midwest. This means that Exit retains the right to transfer the franchise agreement to another party.
Prospective franchisees should carefully review Section 18 of the franchise agreement, as referenced in the table, to fully understand the conditions and implications of such an assignment. Understanding Exit's rights regarding assignment is crucial for franchisees to assess the stability and potential changes in the franchise relationship over time.