Does Exit Realty Upper Midwest have an option to purchase my business?
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 |
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, Exit Realty Upper Midwest does not have an option to purchase your business. Item 17 outlines various aspects of franchise transfer, termination, and dispute resolution. Specifically, it addresses whether Exit Realty Upper Midwest has a right of first refusal or an option to purchase the franchisee's business.
The table within Item 17 clearly indicates that Exit Realty Upper Midwest's option to purchase your business is marked as "Not Applicable." This means that under the standard franchise agreement, Exit Realty Upper Midwest does not retain the contractual right to buy back your franchise.
This lack of an option to purchase provides the franchisee with more control over the future sale of their business. Franchisees can seek potential buyers without the obligation to offer the business to Exit Realty Upper Midwest first. However, franchisees need to adhere to the standard transfer conditions, such as securing approval for the new franchisee, paying any applicable transfer fees, and ensuring the new franchisee completes the necessary training.