What training must the on-premises manager of an Exit franchise complete?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
As a Franchisee, you, or if you are an entity, an officer, member, director, partner or other person named as the real estate broker of record, must devote full time and best efforts to the Franchise business. If the Franchisee is operating as a corporation, partnership or limited liability company, you and all other equity holders in the company must execute a Personal Guaranty of the Franchise Agreement. In addition, in community or marital property states, your spouse may be required to sign the Personal Guaranty. Your business must be directly supervised "on premises" by a manager who has successfully completed EXIT's training programs. The on-premises manager cannot have an interest or business relationship with any of EXIT's competitors. The manager need not have an ownership interest in your corporate or partnership Franchise. The manager must sign a written agreement to maintain confidentiality of the proprietary information described in ITEM 14 and to conform with the covenants not to compete described in ITEM 17 of this Disclosure Document.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 27)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, if a franchisee operates as a corporation, partnership, or limited liability company, the business must be directly supervised "on premises" by a manager who has successfully completed Exit's training programs. The on-premises manager cannot have any business relationship with any of Exit's competitors. The manager does not need to have an ownership interest in the franchise. The manager must also sign a written agreement to maintain confidentiality of proprietary information and conform to the non-compete covenants outlined in the disclosure document.
Specifically, the franchisee and any individual who will serve as the administrator of the franchise office must attend and complete the initial training program to Exit's satisfaction. This attendance must occur at the next scheduled training following the execution of the Franchise Agreement. The initial training program is conducted by Exit Executives and runs for five full days, covering subjects listed in the Table of Contents of the Training Course Manuals. Training times and instructors vary from program to program.
Franchisees are responsible for covering the travel, lodging, meals, and incidental expenses for those attending the initial training program. If a franchisee signs up for the training but fails to attend, or cancels with less than 30 days' notice, Exit charges a $500 fee. Canceling with less than 10 days' notice incurs a $1,000 fee. Exit may also offer some or all of the training online at its option.
In addition, within 60 days after completion of the initial training, the franchisee must complete and attend the 1-day training course conducted by EXIT Realty Upper Midwest (if offered) at a location within the State of Iowa. There are no charges for the Iowa course or the materials, but the franchisee is responsible for their own lodging, meals and incidental expenses. Exit also offers an Advanced Broker Course known as the Master Broker Summit, which requires prior attendance of the Franchise Management Training Course and is recommended to be attended at least once during the five-year term of the Franchise Agreement.