Does Exit Realty Upper Midwest have any predecessors in the real estate franchise business?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 itself has no predecessors in the real estate franchise business. However, a predecessor of the Subfranchisor, EXIT Iowa, LLC, owned the right to sell Exit franchises in Iowa, South Dakota, and Minnesota from 2006 to 2011. These rights were then conveyed to Exit, and later, on August 9, 2013, Exit Realty Upper Midwest acquired the rights to those states from Exit. Additionally, Exit Realty Upper Midwest acquired rights to sell franchises in North Dakota from Thomas F. Martin on July 12, 2013, in Wisconsin from Exit on April 29, and in Illinois from Legacy Success Group LLC on January 2, 2018, through an affiliate, EXIT Realty Upper Midwest Acquisition LLC. On March 1, 2021, Exit Realty Upper Midwest acquired the right to sell franchises in Michigan from Exit.
This indicates that while Exit Realty Upper Midwest as an entity has no direct predecessors, the rights to sell Exit franchises in various states were previously held by other entities, including EXIT Iowa, LLC, Thomas F. Martin, and Legacy Success Group LLC. This history of franchise rights changing hands could be relevant to a prospective franchisee, as it shows the evolution of the franchise network and the involvement of different parties over time.
It is important for potential franchisees to understand the history and evolution of the franchise system in their target region. Knowing which entities previously held the rights to sell franchises and the reasons for these transitions can provide valuable context. This information, combined with due diligence on the current subfranchisor, Exit Realty Upper Midwest, can help franchisees make informed decisions about their investment and partnership.