What is the deadline for an Exit franchisee to open their office after signing the Franchise Agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisees typically open their offices approximately 2 to 3 months after they sign a Franchise Agreement. The primary factor affecting the time period is whether the office is converted from an existing facility or built by the franchisee. Other factors may include the time of year, availability of financing and construction delays. You are required to open your office within 120 days after you sign a Franchise Agreement. If you have not opened your office, within 120 days after you sign a Franchise Agreement, we may declare the Franchise Agreement null and void, without the return of any Initial Franchise Fee or other amounts paid to us. See Franchise Agreement, Section 3.1(B).
Source: Item 11 — FRANCHISOR'S AND SUBFRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–24)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a franchisee is required to open their office within 120 days after signing the Franchise Agreement. The FDD notes that franchisees typically open their offices approximately 2 to 3 months after signing the agreement, but this timeframe can vary based on factors such as whether the office is a conversion of an existing facility or a new build. Other factors influencing the timeline include the time of year, availability of financing, and potential construction delays.
If an Exit franchisee fails to open their office within the 120-day period, Exit has the right to declare the Franchise Agreement null and void. This means the franchisee would not be able to proceed with opening their Exit office, and, importantly, Exit is not obligated to return the initial franchise fee or any other amounts paid to them.
This requirement underscores the importance of careful planning and preparation before signing the Franchise Agreement. Prospective Exit franchisees should ensure they have a viable site selected or a clear plan for site selection, along with secured financing and a realistic timeline for build-out or conversion, to avoid the risk of losing their investment and the franchise opportunity.