Who is responsible for selecting the office site for an Exit franchise?
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(A).
- (5) If you have not selected an office site, if you and EXIT Realty Upper Midwest cannot agree on a site, or if you have not opened your office within 120 days after you sign a Franchise Agreement, EXIT Realty Upper Midwest may declare the Franchise Agreement null and void, without the return of any Initial Fee or other amount paid to us. See Franchise Agreement, Section 3.1(B).
2. Office Opening.
Franchisees typically open their offices approximately 2 to 3 months after they sign a Franchise Agreement. The primary factor affecting the time period is whether the office is converted from an existing facility or built by the franchisee. Other factors may include the time of year, availability of financing and construction delays. You are required to open your office within 120 days after you sign a Franchise Agreement. If you have not opened your office, within 120 days after you sign a Franchise Agreement, we may declare the Franchise Agreement null and void, without the return of any Initial Franchise Fee or other amounts paid to us. See Franchise Agreement, Section 3.1(B).
Source: Item 11 — FRANCHISOR'S AND SUBFRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–24)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the franchisee is primarily responsible for selecting their office site. However, this selection is subject to review and consent by EXIT Realty Upper Midwest. While Exit Realty Upper Midwest may offer consultation regarding site selection, the ultimate responsibility for finding and securing an acceptable location rests with the franchisee.
In evaluating a potential site, Exit Realty Upper Midwest considers various factors, including competition and market analysis, proximity to other real estate offices and potential customers, building suitability, traffic and transportation, the nature of nearby businesses, and the overall advantages of the market. The selected office site must also be within the franchisee's designated Protected Territory.
There is a deadline for opening the Exit office. If a franchisee has not selected an office site, if the franchisee and Exit Realty Upper Midwest cannot agree on a site, or if the franchisee has not opened their office within 120 days after signing the Franchise Agreement, Exit Realty Upper Midwest has the right to declare the Franchise Agreement null and void. In such a case, the initial franchise fee or any other amounts paid to Exit will not be returned to the franchisee. Franchisees typically open their offices approximately 2 to 3 months after they sign a Franchise Agreement.