Does the restriction on operating a real estate brokerage business within a 10-mile radius of my Exit office apply if my Exit franchise agreement expires at the end of its term?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) within a ten (10) mile radius of Franchise's office own, operate, lease, franchise, conduct or engage in, be connected with, have any interest in or assist any person or entity engaged in any real estate brokerage business, provided the foregoing shall not apply if this Agreement expired at the end of its term.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the restriction on operating a real estate brokerage business within a 10-mile radius of your Exit office generally applies. However, this restriction does not apply if your Exit franchise agreement expires at the end of its term.
Specifically, the FDD states that franchisees are restricted from owning, operating, or being involved with any real estate brokerage business within a 10-mile radius of their Exit office. This restriction includes businesses that utilize a reward system for sponsoring sales representatives or operate in a substantially similar manner to the Exit system.
However, there is a notable exception: this restriction does not apply if the Exit franchise agreement expires at the end of its term. This means that once the agreement naturally concludes, the franchisee is no longer bound by the 10-mile radius restriction and can engage in a competing real estate business without violating the franchise agreement. This provides more flexibility for the franchisee after the agreement's expiration.