Are there any geographic limits specified regarding the goods or services an Exit franchisee may offer?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement grants you the right to establish a real estate sales office in a specified geographic territory ("Protected Territory") that is described by boundary streets, highways, cities, counties, or other recognizable demarcations and can be further delineated by a map attached as a part of the Franchise Agreement. You are granted the exclusive right to establish an EXIT realty office within the Protected Territory. You are not restricted from selling real estate services outside your Protected Territory. There is no minimum Protected Territory granted, although the Protected Territory is generally as follows: High density – over 50,000 population; Medium density – 20,000-50,000 population and Rural density – less than 5,000 population. You receive exclusivity for the location of your office. You will not receive an exclusive Territory for EXIT listings and/or sales. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Other EXIT franchises may provide real estate services within your Protected Territory. No compensation is paid to you by us or EXIT for real estate sales by other EXIT franchises within your Protected Territory. Similarly, you may sell real estate services outside of your Protected Territory. There are no restrictions on either you or any other EXIT Franchisee from providing real estate services outside a Protected Territory, including no restrictions on your right to use other channels of distribution, such as the internet, telemarketing or direct marketing, to make sales outside the Protected Territory. EXIT, EXIT Realty Upper Midwest and other EXIT Realty Franchisees reserve the right to use other channels of distribution, including the internet, within the Protected Territory, using EXIT's principal trademarks or using different trademarks. Your exclusivity within the Protected Territory relates only to your operation of an EXIT office within the Protected Territory. The Franchise Agreement provides that EXIT Realty Upper Midwest may not establish either a company-owned or franchised outlet, in the Protected Territory, selling the same goods or similar goods or services under the same or similar trademarks or service marks during the term of the Franchise Agreement, unless you are in default under the terms of the Franchise
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 27)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are granted the right to establish a real estate sales office within a specific geographic territory, referred to as the "Protected Territory." This territory is defined by recognizable demarcations such as boundary streets, highways, cities, or counties, and may be further illustrated by a map included in the Franchise Agreement. While franchisees have the exclusive right to establish an Exit realty office within their Protected Territory, they are not restricted from selling real estate services outside of it.
Exit franchisees do not receive an exclusive territory for Exit listings and/or sales, meaning they may face competition from other franchisees, company-owned outlets, or other distribution channels, even within their Protected Territory. Other Exit franchises are permitted to provide real estate services within a franchisee's Protected Territory, and no compensation is paid for real estate sales by other Exit franchises within that territory. Similarly, franchisees can sell real estate services outside their Protected Territory without restrictions.
In summary, while Exit grants territorial exclusivity for the physical location of an Exit office, it does not restrict franchisees from offering real estate services outside their designated territory. This allows franchisees the flexibility to expand their market reach beyond their primary area, but also means they may face competition from other Exit franchisees and channels within their own territory. Prospective franchisees should consider these factors when evaluating the potential market and competition in their chosen territory.