Are there any restrictions on Exit Realty Franchisees from providing real estate services outside a Protected Territory?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 12 — TERRITORY (FDD pages 24–25)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are not restricted from selling real estate services outside of their Protected Territory. Exit allows franchisees to operate and sell real estate services outside of their designated territory. This provides franchisees with the flexibility to expand their business beyond their primary location.
Exit franchisees also face no restrictions on using various channels of distribution, such as the internet, telemarketing, or direct marketing, to make sales outside their Protected Territory. This enables franchisees to reach a broader customer base and leverage different marketing strategies to increase sales. However, Exit and other Exit Realty franchisees retain the right to use these channels within the franchisee's Protected Territory, potentially creating competition within that area.
While franchisees have the freedom to operate outside their Protected Territory, their exclusivity within the Protected Territory is limited to the operation of an Exit office. This means that other Exit franchises can provide real estate services within the same Protected Territory, and the franchisee will not receive compensation for those sales. This aspect highlights the importance of understanding the competitive landscape and market dynamics within the Protected Territory, as well as the potential for competition from other Exit franchisees.