What are the consequences if the on-premises manager of an Exit franchise fails to complete the required training?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Your business must be directly supervised "on premises" by a manager who has successfully completed EXIT's training programs. The on-premises manager cannot have an interest or business relationship with any of EXIT's competitors. The manager need not have an ownership interest in your corporate or partnership Franchise. The manager must sign a written agreement to maintain confidentiality of the proprietary information described in ITEM 14 and to conform with the covenants not to compete described in ITEM 17 of this Disclosure Document.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 27)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the franchise business must be directly supervised "on premises" by a manager who has successfully completed Exit's training programs. The on-premises manager cannot have an interest or business relationship with any of Exit's competitors. The manager need not have an ownership interest in your corporate or partnership Franchise. The manager must sign a written agreement to maintain confidentiality of the proprietary information described in ITEM 14 and to conform with the covenants not to compete described in ITEM 17 of this Disclosure Document.
While the FDD states that an on-premises manager must complete Exit's training programs, it does not explicitly state the consequences if the on-premises manager fails to complete the training.
To fully understand the implications of non-compliance, a prospective Exit franchisee should ask the franchisor about the specific ramifications if the on-premises manager does not complete the required training. This could include potential penalties, required remedial actions, or other impacts on the franchise agreement.