What actions are prohibited regarding the Exit FDD receipt acknowledgement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
and exclusively to the benefit of EXIT. On the expiration or termination of this Agreement, no monetary value shall be assigned as attributable to or associated with Franchisee's activities as a Franchisee under the Proprietary Marks.
- (B) Franchisee agrees not to make any disparaging remarks, comments or communications, whether oral or written, regarding Subfranchisor or EXIT, or any of their respective officers or directors.
8.6. Incontestability
Franchisee shall not directly or indirectly contest or aid in the contesting of the validity or ownership of any of the Proprietary Marks, or take any action which might affect or prejudice Subfranchisor's or EXIT's rights in or to the Proprietary Marks. The foregoing agreement shall survive the termination of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
Based on the 2025 Exit Franchise Disclosure Document, franchisees are prohibited from certain actions that could negatively impact the Exit brand and its proprietary marks. Specifically, franchisees cannot make disparaging remarks or communications, whether oral or written, about the Subfranchisor or Exit, including their officers or directors. This restriction aims to protect the reputation and goodwill of the Exit system.
Furthermore, franchisees are prohibited from directly or indirectly contesting the validity or ownership of any of Exit's proprietary marks. They also cannot take any action that might affect or prejudice the Subfranchisor's or Exit's rights to these marks. This obligation extends beyond the termination of the Franchise Agreement, ensuring continued protection of Exit's intellectual property.
In addition, franchisees must protect, maintain, and advance Exit's trade name, service mark, and the overall system. They are required to report any imitations or infringements upon them. This proactive approach helps maintain the integrity and uniformity of the Exit brand and its services. These measures collectively ensure that franchisees act in a manner that supports and enhances the Exit system, avoiding any actions that could undermine its value or reputation.