Does the definition of 'Proprietary Marks' for Exit include improvements and modifications?

According to Exit's 2025 Franchise Disclosure Document, the definition of 'Proprietary Marks' does include improvements and modifications. The FDD specifies that Proprietary Marks encompass trade names, trademarks, service marks, logos, emblems, and signs, including any improvements and modifications. These marks are adopted and used by Exit as part of the Exit System and are designated as confidential.

This means that any changes or enhancements made to the existing trademarks, logos, or other identifying marks of the Exit System automatically become part of the Proprietary Marks. As a franchisee, you are licensed to use these marks, including any improvements or modifications, but the ownership and rights to these marks remain exclusively with Exit.

This also implies that any goodwill associated with these marks, including any enhancements you might make through your use, accrues solely to the benefit of Exit. Upon termination of the franchise agreement, no monetary value will be assigned to your activities related to these marks. Franchisees must adopt and use any changes to the Proprietary Marks as if they were part of the Exit System from the beginning of the agreement, ensuring uniform standards and protecting the brand's reputation.