What documents related to the assignee's capitalization must be provided to the Exit Subfranchisor?

According to Exit's 2025 Franchise Disclosure Document, if a franchisee desires to assign their agreement to a corporation, partnership, or limited liability company, the capitalization of the assignee must be approved in writing by the Subfranchisor. To obtain this approval, the Subfranchisor requires specific documentation related to the assignee's financial and organizational structure.

The franchisee must provide the Exit Subfranchisor with copies of the assignee's charter documents, organizational documents, organizational meeting minutes, and "buy-sell" agreements. Additionally, the Subfranchisor can request any other relevant documents they deem necessary to evaluate the assignee's capitalization.

This requirement ensures that the Subfranchisor has sufficient information to assess the financial stability and suitability of the entity taking over the franchise. It protects the Exit brand by ensuring that the new entity is properly structured and capitalized to meet the obligations of the franchise agreement. Franchisees should be prepared to gather and submit these documents to the Subfranchisor as part of the assignment process.