Is there a specific designee that an Exit franchisee must approve to be a licensed real estate broker?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to your state and local laws, you, or your approved designee, must be a licensed real estate broker under the laws of the state within which your office will be located. You must use your office solely for the operation of an EXIT Franchise. You must not use or permit the use of the premises for any other purpose or activities, at any time, without first obtaining our written consent.
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, either the franchisee or their approved designee must be a licensed real estate broker in the state where the Exit office is located. The franchisee must operate the Exit franchise solely for the purpose of an Exit franchise and cannot use the premises for any other purpose without written consent from Exit.
This means that if the franchisee themselves does not hold a real estate broker's license, they must appoint someone who does and receive approval from Exit for that person to act as the licensed broker for the franchise. This ensures that each Exit franchise is managed by a qualified individual who meets the legal requirements for real estate brokerage in the relevant state.
This requirement is typical in the real estate franchise industry, as it ensures that all franchisees are operating legally and ethically. It is important for prospective Exit franchisees to understand this requirement and to ensure that they either have the necessary license themselves or can identify an appropriate designee who will meet Exit's approval.