Will Exit Realty Upper Midwest guarantee a franchisee's lease?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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. In evaluating a proposed site, EXIT Realty Upper Midwest considers such factors as competition and market analysis, proximity to other real estate offices and other potential sources of customers, building suitability, traffic and transportation, the nature and extent of adjacent businesses, the comparative advantages of a particular market, and other factors selected by EXIT Realty Upper Midwest. Your office site must be within your Protected Territory (see Item 12 below). See Franchise Agreement, Section 3.1(A).
Source: Item 10 — FINANCING (FDD page 19)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit Realty Upper Midwest generally does not own office sites that are leased by franchisees. While Exit Realty Upper Midwest may offer consultation regarding site selection, the franchisee is ultimately responsible for securing an acceptable location.
This means that prospective Exit franchisees should not expect Exit Realty Upper Midwest to guarantee their lease. Franchisees must independently evaluate potential locations, negotiate lease terms, and bear the financial responsibility for their office space. This is a common practice in the franchise industry, as franchisors typically do not want to assume the financial risk associated with individual franchisee leases.
It is important for potential Exit franchisees to carefully consider the costs associated with leasing office space, including rent, utilities, and build-out expenses, when evaluating the overall financial feasibility of the franchise. They should also conduct thorough due diligence on potential locations to ensure they meet the needs of their business and are likely to attract customers.