What is the role of Exit Realty Upper Midwest in the franchise agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
You may become a Franchisee by entering into a Franchise Agreement with EXIT Realty Upper Midwest, which sets forth your obligations and the obligations of EXIT Realty Upper Midwest. The EXIT Franchise Agreement is attached to this Disclosure Document as Exhibit A-2. EXIT Realty Upper Midwest and you are the only two parties to the Franchise Agreement. The fee structure is outlined in the EXIT Formula (part of the Franchise Agreement).
To simplify the language in this Disclosure Document, "EXIT" means EXIT Realty Corp. International, the Franchisor. "EXIT Realty Upper Midwest," "we," "us" and similar words mean Upper Midwest Realty, Inc., a Minnesota Corporation, doing business as EXIT Realty Upper Midwest, the Subfranchisor. "You" means the individual or entity that purchases the Franchise. If you form a corporation, partnership or other organization, the reference to "You" may include the organization's owners.
Subfranchisor is Upper Midwest Realty, Inc., d/b/a EXIT Realty Upper Midwest, a Minnesota corporation with its principal offices located at 20765 Holyoke Ave, Lakeville, MN 55044, ("EXIT Realty Upper Midwest"). EXIT Realty Upper Midwest is a privately held entity and is not affiliated with EXIT. Exhibit B lists the state agencies also authorized to receive service of process. EXIT Realty Upper Midwest has been in the business of selling real estate franchises since August 9th 2013. EXIT Realty Upper Midwest has no predecessors. EXIT Realty Upper Midwest has never offered franchises in other lines of business.
EXIT has granted the exclusive right to EXIT Realty Upper Midwest to sell and establish EXIT franchises in the State of Wisconsin. EXIT Realty Upper Midwest offers these franchises under its Subfranchise Agreement with EXIT. EXIT Realty Upper Midwest acts as an independent contractor and not as an agent of EXIT. The franchise described in this Disclosure Document is offered solely by EXIT Realty Upper Midwest. Purchasers of a franchise will have a contractual relationship only with EXIT Realty Upper Midwest and may look only to EXIT Realty Upper Midwest for performance under the individual Franchise Agreements.
EXIT Realty Upper Midwest will provide certain specified support and services to all Franchisees in their assigned geographical territory.
Any real estate brokerage office that joins the EXIT System is referred to in this Disclosure Document as a "Franchisee." Franchisees offer real estate brokerage services to the general public as independently owned and operated entities utilizing the EXIT Trademarks together with a pre-selected "Trade Style" name in conjunction with the unique system and formula of EXIT. The Franchise Agreement is executed between EXIT Realty Upper Midwest (the Subfranchisor) and you (the Franchisee).
Source: Item 1 — THE FRANCHISOR AND SUBFRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 6–8)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit Realty Upper Midwest acts as the subfranchisor for the Exit franchise system in specific territories. As a subfranchisor, Exit Realty Upper Midwest is the entity that franchisees will enter into a franchise agreement with, making them the primary contact for the franchisee. The franchisee's contractual relationship is solely with Exit Realty Upper Midwest, and the franchisee must look to them for performance under the franchise agreement. Exit Realty Upper Midwest is not an agent of Exit Realty Corp. International, but rather an independent contractor. They are responsible for offering and selling franchises within their designated territories under a Subfranchise Agreement with Exit.
Exit Realty Upper Midwest has been selling real estate franchises since August 9, 2013. They acquired the rights to sell franchises in various states, including Iowa, South Dakota, Minnesota, North Dakota, Wisconsin, Illinois, and Michigan, at different times. This means that if a prospective franchisee is looking to open an Exit Realty franchise in one of these states, they will be dealing directly with Exit Realty Upper Midwest rather than Exit Realty Corp. International.
Exit Realty Upper Midwest also provides certain specified support and services to all franchisees within their assigned geographical territory. This support is part of the overall Exit System, which includes brand name identification, advertising, training programs, manuals, and referral programs. Franchisees benefit from the Exit System by using Exit's trademarks and systems to offer real estate brokerage services. Exit Realty Upper Midwest will provide new information and techniques to franchisees through confidential Training Manuals.