What documents is the Exit franchisee required to execute to assist in the defense or prosecution of litigation relating to the Proprietary Marks?

According to the 2025 FDD, if Exit or its subfranchisor undertakes the defense or prosecution of any litigation relating to the Proprietary Marks, the franchisee must execute any and all documents that legal counsel for Exit or the subfranchisor deems reasonably necessary to assist in such defense or prosecution. This is without reimbursement or remuneration to the franchisee.

This requirement means that as an Exit franchisee, you could be compelled to sign documents and provide assistance in legal cases involving Exit's trademarks. This obligation extends to both defending against claims made against the trademarks and pursuing legal action against infringers. The determination of what is "reasonably necessary" is made by Exit's or the subfranchisor's legal counsel, potentially giving you limited control over the extent of your involvement.

While the FDD specifies that the franchisee will not receive direct compensation for this assistance, it's important to note that protecting the Proprietary Marks benefits the entire Exit system, including individual franchisees, by maintaining brand recognition and preventing unauthorized use. Franchisees should clarify with Exit what types of documents they might be asked to execute and the potential time commitment involved in assisting with litigation to fully understand this obligation.

This type of clause is relatively standard in franchise agreements, as franchisors need the cooperation of their franchisees to protect their intellectual property effectively. However, the lack of guaranteed reimbursement for expenses could be a point of negotiation or concern for potential franchisees.