When assigning a Exit subfranchise, what documents related to the assignee must be provided to the Subfranchisor?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
y promise or representation.
13.2. Subfranchisor
It is understood that Subfranchisor has been granted a license by EXIT to grant franchises and enforce EXIT's rights in the Proprietary Marks in a specified territory which includes the Protected Territory.
14. FORM OF OWNERSHIP
14.1. In General
Individuals desiring to do business as a corporation, partnership, or limited liability company shall submit to Subfranchisor in writing a statement including appropriate evidence of compliance with all of the requirements of this Section 14 as may be reasonably requested by Subfranchisor. Subfranchisor's written consent to operate as a business entity shall be promptly given in the event of compliance with the requirements below. Nothing in this Agreement shall be construed as permitting Franchisee to license the rights, duties and obligations contained in this Agreement to a corporation, partnership or limited liability company without assignment made in accordance with Section 18 of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, if a franchisee desires to conduct business as a corporation, partnership, or limited liability company, they must provide the subfranchisor with a written statement that includes evidence of compliance with all requirements the subfranchisor may reasonably request.
Additionally, the franchisee must furnish the subfranchisor with copies of the transfer documents in a form acceptable to the subfranchisor. The franchisee must also provide the subfranchisor with complete financial information on the subject franchise required by the transferee.
Furthermore, the franchisee must ensure the capitalization of the assignee is approved in writing by the subfranchisor. The subfranchisor must be provided with copies of the assignee's charter documents, organizational documents, organizational meeting minutes, "buy-sell" agreements, and any other relevant documents as may be requested by the subfranchisor.