What is the required content of the geographical boundaries description for an Exit territory?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | The following information is deemed a part of the EXIT Realty Corp. Franchise Agreement between Subfranchisor and the party identified below dated [date from page 1 of franchise agreement], 20 | |||
|---|---|---|---|---|
| 2. | The name of this territory is | |||
| 3. | The grid population for this territory type grid (Rural/low/medium or high density. Please indicate) | is making this a | ||
| 4. | The minimum office space requirement shall be: | |||
| a) | ||||
| Rural density – | ||||
| 750 | ||||
| square feet | ||||
| b) | ||||
| Low density – | ||||
| 1,000 square feet | ||||
| c) | ||||
| Medium density – | ||||
| 1,500 square feet | ||||
| d) | ||||
| High density – | ||||
| 2,000 square feet | ||||
| 5. | The geographical boundaries of the Territory are as indicated on the map attached to this page. The | |||
| Territory is further described as follows: | ||||
| [COMPLETE | DESCRIPTION | |||
| THE | IN | |||
| GEOGRAPHICAL | DETAIL |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the geographical boundaries of a franchisee's territory must be indicated on a map attached to the franchise agreement. The territory must also be thoroughly described in detail.
This description is crucial for Exit franchisees because it defines their exclusive operating area. According to the FDD, the franchisee has the sole right to establish a brokerage office or offices using the Exit name and system within the defined geographical area, as shown on Schedule 3. This exclusivity is a key benefit of the franchise, protecting the franchisee from direct competition from other Exit franchises or company-owned offices.
The FDD also states that the grant of franchise and the exclusivity are conditional. The franchisee must maintain a valid real estate broker's license, avoid defaulting on the agreement, and ensure the agreement is not terminated or abandoned. If the franchisee breaches the agreement and fails to cure the default, the agreement becomes nonexclusive, and the subfranchisor can operate or sell franchises within the previously protected territory. Therefore, understanding and adhering to the terms of the franchise agreement is essential to maintaining the exclusive rights to the territory.
Prospective Exit franchisees should carefully review the map and detailed description of the territory in Schedule 3 of the franchise agreement. It is important to ensure that the territory meets their business goals and expectations. Franchisees should also clarify with the franchisor any questions or concerns regarding the boundaries and exclusivity provisions before signing the agreement.