Does Exit Realty Upper Midwest have a right of first refusal to acquire 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 right of first refusal to acquire your business | Not Applicable | |
| o. | EXIT Realty Upper Midwest's option to purchase your business | Not Applicable |
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 a right of first refusal to acquire your business. Item 17 of the FDD outlines the terms for renewal, termination, transfer, and dispute resolution, and includes a table that addresses whether Exit Realty Upper Midwest has a right of first refusal.
The table indicates that Exit Realty Upper Midwest's right of first refusal to acquire your business is "Not Applicable." This means that as a franchisee, you are not obligated to offer Exit Realty Upper Midwest the first opportunity to buy your franchise if you decide to sell it. This can provide you with more flexibility and control over the sale of your business, as you are free to negotiate with any potential buyer.
It is important to note that while Exit Realty Upper Midwest does not have a right of first refusal, they do have the right to approve all transfers of the franchise. This approval will not be unreasonably withheld. The conditions for approval include ensuring the new franchisee qualifies, payment of a transfer fee (10% of the current initial franchise fee, but not exceeding 25% of the initial fee you paid), approval of the purchase agreement, arrangement of training for the new franchisee, and the signing of necessary assignment and franchise agreements.