Where in the Exit Disclosure Document can I find more information about the franchisee's obligations regarding compliance with standards, policies, and the operating manual?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
part of the EXIT System at the time this Agreement was executed; and (ii) to obtain advance written approval from Subfranchisor for the total appearance of the trade name and logo incorporating Franchisee's name or other identifying words.
8.8. Training Manuals and EXIT System
- (A) In order to protect the reputation, goodwill and uniform standards of operation of the EXIT System, Franchisee shall conduct its operations and business in accordance with the Training Manuals as may from time to time be updated or amended by EXIT. The then current Training Manuals will be provided to Franchisee as provided at Section 12.1 of this Agreement. The Training Manuals are on loan to Franchisee and shall remain the property of EXIT or Subfranchisor, as the case may be. The Table of Contents to the current Training Manuals was provided to Franchisee prior to the execution of this Agreement.
- (B) All information in the Training Manuals shall be deemed confidential and is disclosed to Franchisee only in the context of this Agreement, including the confidentiality requirements set forth in Section 20 of this Agreement. Franchisee shall at all times treat the Training Manuals and any other manuals created or approved for or used in the operation of Franchisee's business, and the information contained therein as confidential, and shall use all reasonable efforts to maintain the manuals and information as secret and confidential. Franchisee shall not at any time copy, duplicate, record or otherwise reproduce any of these materials, in whole or in part, except as may be otherwise provided in the Training Manuals, and shall not make these materials available to any unauthorized person. Franchisee shall take all reasonable steps necessary to prevent the unauthorized disclosure of the confidential information, including requiring the execution of confidentiality statements by its Sales Representatives, employees, officers, directors, members and partners in such form as may be provided by EXIT or Subfranchisor.
- (C) EXIT shall have the sole authority to change, add to, delete or modify the Proprietary Marks, Training Manuals or other parts of the EXIT System, and to do so from time to time. Franchisee
shall, at its own expenses and within a reasonable time not to exceed sixty (60) days after receipt of written notice, adopt and use any such changes, additions, deletions or modifications to the Proprietary Marks, Training Manuals or other parts of the EXIT System. Franchisee shall at all times ensure that its copy of the Training and Operating Manuals are kept current and up to date. In the event of any dispute as to the content of any Manual, the master copy of the Manual maintained by EXIT shall control.
8.9. Approved Suppliers
The Training Manual establishes the standards by which EXIT or its affiliate has established Approved Suppliers, the types of products and services for which Approved Suppliers must be utilized, and the procedure by which Approved Suppliers may be added to the list of Approved Suppliers. Franchisee shall at all times comply with the procedures and requirements regarding Approved Suppliers.
9. OBLIGATIONS OF FRANCHISEE; QUALITY CONTROL
9.1. Licensing Requirements
Franchisee shall at all times hold a valid real estate broker's license and shall maintain good standing and comply with the codes of the local regulatory body that serves its Protected Territory.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 18–19)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Item 10 and section 8.8 within Item 23, detail the franchisee's obligations regarding compliance with the standards, policies, and operating manual. Specifically, franchisees must strictly observe the most current rules of operation established by Exit and any Subfranchisor, including adherence to specific system standards and quality control directives. These rules are considered an integral part of the Exit system, and compliance is a material condition of the Franchise Agreement. Franchisees must also adhere strictly to the quality control standards outlined in the Training Manuals, which include operating procedures and quality control directives.
To protect Exit's reputation and uniform standards, franchisees must operate their business according to the Training Manuals, which Exit may update or amend. These manuals are provided to the franchisee and remain the property of Exit or the Subfranchisor. The franchisee receives the Table of Contents to the current Training Manuals before signing the Franchise Agreement. All information within the Training Manuals is deemed confidential and is disclosed solely within the context of the Franchise Agreement, subject to confidentiality requirements. Franchisees must treat the manuals and their contents as confidential, using all reasonable efforts to maintain their secrecy.
Furthermore, franchisees are prohibited from copying, duplicating, or reproducing any of these materials, except as permitted in the Training Manuals, and must not make them available to unauthorized individuals. Franchisees must take necessary steps to prevent unauthorized disclosure of confidential information, including requiring confidentiality statements from their sales representatives, employees, officers, directors, members, and partners. Exit retains the sole authority to change, add to, delete, or modify the Proprietary Marks, Training Manuals, or other components of the Exit System, and franchisees must adopt and use these changes within a reasonable timeframe, not exceeding sixty days after receiving written notice. Franchisees are responsible for ensuring their copy of the Training and Operating Manuals remains current and up to date, with the master copy maintained by Exit controlling in case of any disputes.