What do Exit's sub-franchisors do?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
EXIT Realty Corp. International ("EXIT") is the Franchisor. EXIT provides strategic oversight and support of all EXIT Subfranchises and Franchises with regard to the establishment, maintenance and updates of all policies, procedures, standards, and business insight of EXIT.
If termination is because of a default or other agreed upon terms, sponsoring bonuses to associates who are no longer with EXIT will be paid to the Subfranchisor as provided in the EXIT Formula or if the Subfranchisor does not exist, to EXIT.
This Agreement may be unilaterally transferred by Subfranchisor without the approval or consent of Franchisee with the consent of Franchisor. Any such transfer shall inure to the benefit of the transferee and Subfranchisor's interest in this Agreement shall automatically terminate on the date of the transfer.
Franchisee shall at all times maintain a written Sales Representative Agreement between Franchisee and each of its Sales Representatives; which Agreement shall be in a form approved by Subfranchisor or EXIT. Franchisee shall provide the Subfranchisor and Franchisor with the version of the Sales Representative Agreement that they are using within their office.
Franchisee shall submit to EXIT and Subfranchisor such forms, reports, and records as specified and at the times indicated in this Agreement, in the Training Manuals and in other written communications from EXIT and Subfranchisor.
Franchisee acknowledges that Subfranchisor has not developed the software to be provided by EXIT to Franchisee. Subfranchisor does not provide upgrades, new versions, fixes or patches of the software provided by EXIT. Subfranchisor makes no representations or warranties concerning the structure, performance of the software provided by EXIT or the suitability of the software provided by EXIT for use in Franchisee's business.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, subfranchisors are involved in various aspects of the franchise operation. Specifically, Exit's franchisor, EXIT Realty Corp. International, provides strategic oversight and support to all Exit subfranchises and franchises. This support includes the establishment, maintenance, and updates of policies, procedures, standards, and business insights.
Subfranchisors also play a role in the event of a franchisee's termination. If a franchisee's sponsoring bonuses are to be paid to associates who are no longer with Exit due to a default or agreed-upon terms of termination, these bonuses are paid to the subfranchisor if one exists. If there is no subfranchisor, these bonuses revert to Exit. Additionally, a subfranchisor can unilaterally transfer their agreement without the franchisee's approval, provided the franchisor consents. In such cases, the subfranchisor's interest in the agreement automatically terminates upon transfer.
Furthermore, franchisees must ensure that all Sales Representative Agreements they maintain with their sales representatives are in a form approved by the subfranchisor or Exit. Franchisees are also required to submit forms, reports, and records to both Exit and the subfranchisor as specified in the agreement, training manuals, and other written communications. While the franchisee utilizes software developed by Exit, the subfranchisor does not provide software upgrades or warranties regarding the software's performance or suitability.