Does Exit Realty Upper Midwest own the office sites that are leased by Exit franchisees?
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).
- (5) If you have not selected an office site, if you and EXIT Realty Upper Midwest cannot agree on a site, or if you have not opened your office within 120 days after you sign a Franchise Agreement, EXIT Realty Upper Midwest may declare the Franchise Agreement null and void, without the return of any Initial Fee or other amount paid to us. See Franchise Agreement, Section 3.1(B).
Source: Item 11 — FRANCHISOR'S AND SUBFRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–24)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit Realty Upper Midwest generally does not own the office sites that are leased by Exit franchisees. The franchisee is responsible for selecting their office site, subject to Exit Realty Upper Midwest's review and consent, and securing the fee or leasehold title for the site. While Exit Realty Upper Midwest may offer consultation regarding site selection, the ultimate responsibility for finding and obtaining an acceptable site rests with the franchisee.
Exit Realty Upper Midwest considers factors such as competition, market analysis, proximity to other real estate offices, building suitability, traffic, transportation, and the nature of adjacent businesses when evaluating a proposed site. The office site must also be within the franchisee's protected territory.
If a franchisee has not selected an office site, if the franchisee and Exit Realty Upper Midwest cannot agree on a site, or if the franchisee has not opened their office within 120 days after signing the Franchise Agreement, Exit Realty Upper Midwest has the right to declare the Franchise Agreement null and void. In such a case, the initial fee or any other amount paid to Exit will not be returned to the franchisee. This highlights the importance of securing a suitable location promptly after entering into a franchise agreement with Exit.