Can Exit Realty Upper Midwest use the internet within my Protected Territory?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Other EXIT franchises may provide real estate services within your Protected Territory. No compensation is paid to you by us or EXIT for real estate sales by other EXIT franchises within your Protected Territory. Similarly, you may sell real estate services outside of your Protected Territory. There are no restrictions on either you or any other EXIT Franchisee from providing real estate services outside a Protected Territory, including no restrictions on your right to use other channels of distribution, such as the internet, telemarketing or direct marketing, to make sales outside the Protected Territory. EXIT, EXIT Realty Upper Midwest and other EXIT Realty Franchisees reserve the right to use other channels of distribution, including the internet, within the Protected Territory, using EXIT's principal trademarks or using different trademarks. Your exclusivity within the Protected Territory relates only to your operation of an EXIT office within the Protected Territory.
Source: Item 12 — TERRITORY (FDD pages 24–25)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit Realty Upper Midwest retains the right to utilize the internet within a franchisee's protected territory. The FDD clarifies that while a franchisee gains exclusive rights to operate an Exit office within their designated territory, this exclusivity does not extend to online real estate services. This means that Exit Realty Upper Midwest, as well as other Exit franchisees, can still market and sell real estate services within your territory through online channels.
This aspect of the franchise agreement has significant implications for prospective franchisees. It means that you will likely face competition from both Exit Realty Upper Midwest and other franchisees within your own protected territory when it comes to online leads and sales. The FDD specifically states that there are no restrictions on Exit Realty Upper Midwest or other Exit franchisees from using channels like the internet to make sales outside of a protected territory, and this extends to using the internet within your territory as well.
This is a fairly common practice in franchising, as franchisors often want to maintain control over their brand's online presence and lead generation. However, it's crucial for potential Exit franchisees to understand that their protected territory only applies to the physical location of their office and not to online sales or marketing activities. This could impact your business plan and revenue projections, as you'll need to factor in competition from other Exit entities in the online space. Prospective franchisees should inquire about Exit's online marketing strategies and how they might impact individual franchise territories.