What state's law governs the Exit Realty Upper Midwest franchise agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| w. Choice of law | 25 | Subject to applicable state law, Minnesota |
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION]
The following states have statutes which may supersede the Agreements in your relationship with EXIT including the areas of termination and renewal of your Franchise and venue for disputes and governing law: ARKANSAS [Ark. Code § 4-72-204], CALIFORNIA [Bus. & Prof. Code Sections 20000-20043], CONNECTICUT [Gen. Stat. Section 42-133e et seq.], DELAWARE [Code, tit. 6, Ch.25, Sections 2551, et seq.], HAWAII [Rev. Stat. Section 482], ILLINOIS [Rev. Stat. Chapter 815 ILCS 705/1-44], INDIANA [Stat. Section 23-2-2.7], IOWA [Code Sections 523H.1 - 523H.17], MICHIGAN [Stat. Section 445.1527(c)], MINNESOTA [Stat. Section 80C.14], MISSISSIPPI [Code Section 75-24-53], MISSOURI [Stat. Section 407.405], NEBRASKA [Rev. Stat. Section 87-404], NEW JERSEY [Stat. Section 56:10-1], RHODE ISLAND [Gen. Laws § 6- 50-4], TENNESSEE [Code Ann. § 47-25-1503], VIRGINIA [Code 13.1-557-574 - 13.1-564], WASHINGTON [Code Section 19.100.180], WISCONSIN [Stat. Section 135.03]. These and other states may have court decisions which may supersede the Agreements in your relationship with EXIT including the areas of termination and renewal of your Franchise, venue for disputes and governing laws.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 27–31)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the franchise agreement for Exit Realty Upper Midwest is governed by Minnesota law. Specifically, Item 17 indicates that this is 'subject to applicable state law'. This means that while the agreement specifies Minnesota as the choice of law, this may be superseded by statutes in certain states.
Item 17 of the FDD lists several states, including Arkansas, California, Connecticut, Delaware, Hawaii, Illinois, Indiana, Iowa, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, Rhode Island, Tennessee, Virginia, Washington, and Wisconsin, that have statutes which may supersede the agreements in the franchisee's relationship with Exit. These statutes can affect areas such as termination and renewal of the franchise, the venue for disputes, and the governing law.
Prospective franchisees should be aware that the application of Minnesota law as stated in the Exit Realty Upper Midwest franchise agreement might not be absolute. Depending on the franchisee's location, the laws of their state could take precedence, especially concerning franchise termination, renewal, dispute resolution, and other key aspects of the franchise relationship. It is important to consult with a legal professional to understand how these state-specific statutes might impact the franchise agreement.