Is Exit Realty Upper Midwest responsible for securing financing for 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
Source: Item 10 — FINANCING (FDD page 19)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit Realty Upper Midwest does not secure financing for franchisees. The FDD states that franchisees are responsible for securing fee or leasehold title for their office site. While Exit Realty Upper Midwest may consult with franchisees regarding site selection, the franchisee is ultimately responsible for locating and obtaining an acceptable site.
This means that prospective Exit franchisees must independently arrange for the necessary capital to cover expenses such as the initial franchise fee, real estate costs, build-out, equipment, and working capital. Securing financing is a critical step for new franchisees, and it's essential to have a solid financial plan in place.
Prospective franchisees should inquire with Exit about any relationships they may have with preferred lenders or financial institutions that are familiar with the Exit franchise model. While Exit may not directly provide financing, they may be able to offer guidance or resources to help franchisees navigate the financing process. It is also advisable to consult with a financial advisor to explore all available funding options and determine the best course of action.