Who directs the changes to signs, telephone numbers, buildings, or structures that an Exit franchisee must make after termination or non-renewal?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (E) Franchisee, at its expense, shall make or cause to be made such changes in signs, telephone numbers, buildings or structures as EXIT or Subfranchisor may direct in order to distinguish Franchisee effectively from its former appearance and from other EXIT Affiliates.
The changes shall include a complete change in the trade name from that under which Franchisee conducted its business while affiliated with the System.
If Franchisee shall, upon request, fail or omit to make or cause to be made the changes within ten (10) days, then Subfranchisor shall have the right to enter upon the premises, without liability, and make, or cause to be made, the changes at the expense of Franchisee, which expenses shall be paid by Franchisee upon demand.
- (F) Franchisee shall, at Subfranchisor's direction, file the appropriate forms to abandon and/or withdraw any assumed name certificate, to cease all activities with and claims to ownership of any trade or assumed name containing any Proprietary mark or to transfer the same to Subfranchisor, and/or to change the name of its corporation, partnership, or affiliate to eliminate any reference to the System.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, after termination or non-renewal of the franchise agreement, either Exit or the Subfranchisor has the authority to direct the changes a franchisee must make to signs, telephone numbers, buildings, or structures. These changes are intended to clearly differentiate the franchisee's operations from Exit and its affiliates to avoid public confusion.
Specifically, the franchisee is responsible for covering the expenses associated with these required changes. This includes altering the trade name under which the franchisee previously conducted business to ensure it is completely different from the Exit brand.
If the franchisee fails to make these changes within ten days of being requested, the Subfranchisor has the right to enter the premises and make the changes themselves, without incurring any liability. The franchisee will then be responsible for paying these expenses upon demand. Additionally, the franchisee must comply with the Subfranchisor's directions to file necessary forms to abandon any assumed names containing Exit's proprietary marks and transfer them to the Subfranchisor.