How can someone become an Exit Franchisee?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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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).
Every Franchise must possess a bonafide real estate broker's license in good standing under the laws of the state where the Franchise is located. Franchisees are expected to provide first class real estate service to the buying and selling public. The Franchisee has the responsibility to hire and recruit real estate sales representatives and to compete in the real estate brokerage business. The number of sales representatives required under a Franchise Agreement is based on the active Realtor® population in the geographic territory that includes your Protected Territory (see ITEM 12 of this Disclosure Document) and based upon market conditions and competition.
EXIT's agents for service of process are disclosed in Exhibit B of this Disclosure Document.
Your activities are subject to state and federal laws and regulations, including, but not limited to, those related to real estate transfer, real estate settlement procedures and real estate brokerage laws.
If the Franchisee is operating as a corporation, partnership or limited liability company, you must comply with the requirements of entity ownership set forth in Section 14 of the Franchise Agreement. Those requirements include:
- (a) You must execute a Personal Guaranty of the Franchise Agreement.
- (b) The Franchisee entity must be legally authorized to do business in the state where your Protected Territory is located.
- (c) You must provide EXIT Realty Upper Midwest with copies of the Franchise entity's organizational documents, such as Articles of Incorporation and Bylaws, Articles of Organization and Operating Agreement or Partnership Agreement, including a breakdown of ownership.
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, you can become a franchisee by entering into a Franchise Agreement with EXIT Realty Upper Midwest. This agreement outlines the obligations of both the franchisee and EXIT Realty Upper Midwest. The fee structure is detailed within the EXIT Formula, which is a part of the Franchise Agreement.
To qualify as an Exit franchisee, you must possess a valid real estate broker's license in good standing within the state where the franchise will operate. Franchisees are expected to deliver high-quality real estate services to clients. A key responsibility involves hiring and recruiting real estate sales representatives to compete effectively in the local real estate market. The required number of sales representatives is determined by the active Realtor population in the protected geographic territory and is also influenced by market conditions and competition.
If the franchisee operates as a corporation, partnership, or limited liability company, specific requirements must be met. These include executing a personal guaranty of the Franchise Agreement, ensuring the franchisee entity is legally authorized to conduct business in the relevant state, providing EXIT Realty Upper Midwest with organizational documents (such as Articles of Incorporation and Bylaws or Partnership Agreement) that include ownership details, and supplying a copy of any Buy-Sell Agreement between the equity holders of the franchisee entity. Compliance with these requirements is essential for maintaining the franchise.
Prospective franchisees should carefully review Exhibit A-2 of the FDD, which contains the Franchise Agreement, to fully understand their obligations and EXIT Realty Upper Midwest's responsibilities. Additionally, consulting with an attorney is recommended to ensure compliance with all applicable federal, state, and local laws and regulations related to real estate brokerage and business operations.