Under what condition must an Exit franchisee or their designee 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 hold a valid real estate broker's license in the state where the Exit office is located. This requirement ensures that the Exit franchise operates under the supervision of a qualified and licensed professional who is knowledgeable about real estate laws and practices in the specific jurisdiction.
This condition is in place to ensure that the Exit franchisee complies with all state and local laws governing real estate brokerage activities. It also helps to maintain the integrity and reputation of the Exit brand by ensuring that franchisees provide competent and professional services to their clients. The franchisee is responsible for ensuring the office is used solely for the operation of the Exit franchise and not for any other purpose without written consent from Exit.
For a prospective Exit franchisee, this means that if they do not personally hold a real estate broker's license, they must designate an individual who does. This designee will likely need to be involved in the daily operations of the franchise to ensure compliance with real estate regulations. The franchisee should factor in the cost of hiring and compensating a qualified designee if they do not meet this requirement themselves. This requirement is fairly standard in the real estate franchise industry, as it ensures a level of professionalism and legal compliance.