What is the condition related to financial obligations that exempts an Exit franchisee from changing telephone numbers after termination?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (H) Franchisee shall immediately cause the local telephone company to change all of its telephone numbers and assign the numbers listed for the franchised real estate office to Subfranchisor.
If at the expiration of this Agreement, Franchisee has complied with all of its financial obligations to EXIT and Subfranchisor and it is not otherwise in default, Franchisee shall not be obligated to comply with the provisions of this Subsection 17(H).
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a franchisee is typically required to change their telephone numbers and assign them to the subfranchisor upon the expiration of the franchise agreement. However, there is an exception to this rule. If the Exit franchisee has fulfilled all of their financial obligations to both Exit and the subfranchisor and is not in default at the time of the agreement's expiration, they are not required to change their telephone numbers.
This provision offers a potential benefit to Exit franchisees who maintain good financial standing throughout their franchise term. By meeting all financial obligations, a franchisee can avoid the inconvenience and potential business disruption associated with changing telephone numbers after the franchise agreement ends. This can be particularly important for maintaining continuity with existing clients and contacts.
It is important for prospective Exit franchisees to understand the importance of meeting all financial obligations to Exit and the subfranchisor. Failure to do so could result in the franchisee being required to change their telephone numbers upon termination or expiration of the franchise agreement, which could negatively impact their ability to continue operating a similar business after the franchise relationship ends.