What is the duty of loyalty required of Exit Sales Representatives in support of the Exit System?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- f) Duty of Loyalty. Sales Representative shall act under a duty of loyalty in support and in furtherance of the EXIT System and shall maintain a proper attitude toward the public, EXIT [Trade Name] and EXIT [Trade Name] Sales Representatives. Sales Representative shall not engage in any acts or activities that may disrupt or discredit the EXIT System, its operations or EXIT [Trade Name], or that may detract from or tend to undermine the growth of the EXIT [Trade Name] organization.
- g) Restrictions on Subsequent Business Activity. Upon termination of this Agreement for any reason, Sales Representative shall immediately refrain from all representations, advertisements, actions and business activities that may mislead others to believe Sales Representatives are affiliated in any way with EXIT [Trade Name]. Sales Representative shall not adopt or use in connection with, or in the name of, any subsequent real estate business the term EXIT or any term confusingly similar to the term or any other term which may have the effect of creating confusion or question regarding Sales Representative's affiliation with the EXIT organization, including without limitation any name or term with the prefix "EX" or "IT".
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Sales Representatives have a duty of loyalty to support and further the Exit System. This includes maintaining a positive attitude towards the public, Exit, and other Exit Sales Representatives.
Specifically, Sales Representatives must not engage in any actions that could disrupt or discredit the Exit System, its operations, or Exit itself. They also must avoid actions that could undermine the growth of the Exit organization. This means that Sales Representatives are expected to act in a way that promotes the brand and its reputation.
Upon termination of their agreement with Exit, Sales Representatives must immediately stop representing themselves as affiliated with Exit. They are also prohibited from using the term "Exit" or any confusingly similar term in any subsequent real estate business. This restriction includes names or terms with the prefix "EX" or "IT" if it creates confusion about their affiliation with Exit. This is a common clause to protect the brand's identity and prevent confusion in the marketplace.