What action must an Exit franchisee take to notify the public that they are operating as an independent business?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
mplied with the provisions of this Agreement, curing all defaults and non-compliance under this Agreement and any other franchise agreements or other agreements it may have with Subfranchisor and/or EXIT.
9.3. Franchisee's Trade Name; Legal Name
- (A) Franchisee shall conduct its business under the trade name that includes the word "EXIT" and either the words "Realty" or "Real Estate" (hereinafter "Trade Style name"). Franchisee shall obtain Subfranchisor's written approval of its Trade Style name, prior to making any commitments or records of such name. The word EXIT must be positioned at the beginning of the name and EXIT must always be in CAPS. In no event shall such name contain any arbitrary, whimsical, invented or suggestive words or acronyms. Franchisee will file for a certificate of fictitious or assumed name in the manner required by applicable state law so as to notify the public that Franchisee is operating its Franchise as an independent business pursuant to this Agreement. Franchisee shall have no right to use or register the Trade Style name apart from the right granted under this Agreement, and all such rights shall cease upon the termination or expiration of this Agreement.
- (B) The Trade Style name is the name under which the Franchisee shall conduct business, and shall be different than Franchisee's legal entity name.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees must include a specific statement on various materials to inform the public of their independent status. Specifically, Exit franchisees must include the statement "each office independently owned and operated" or "Independent Member Broker" on their web page, telephone book advertisements, exterior signs, lawn signs, letterhead, deposit receipt forms, listing agreements, and other printed materials.
Furthermore, the franchisee must conspicuously display this statement on their website, if they have one, and at a prominent location at the main entrance of their office. This requirement ensures that customers are aware that each Exit office is independently run, which can affect the handling of transactions and customer service.
In addition to the required statement, Exit franchisees must also file for a certificate of fictitious or assumed name as required by applicable state law. This filing serves to further notify the public that the franchisee is operating as an independent business under the Exit franchise agreement. The trade name used by the franchisee must include the word "EXIT" and either "Realty" or "Real Estate," with "EXIT" positioned at the beginning of the name and always in capital letters. This trade style name must be approved by the subfranchisor and cannot contain any arbitrary or suggestive words.