Who are the entities to whom the Exit Franchisee may owe monetary obligations that survive termination?

According to Exit's 2025 Franchise Disclosure Document, several entities may be owed monetary obligations by the franchisee even after the termination of the franchise agreement. Specifically, all provisions in the agreement concerning obligations of the franchisee to Exit, the Subfranchisor, and the Broker's Council are deemed to survive the termination. This means that any outstanding financial responsibilities to these entities remain even after the franchise relationship ends.

This survival of obligations has significant implications for a prospective Exit franchisee. It means that even after the franchise is terminated, whether by choice or due to default, the franchisee is still responsible for fulfilling any pending financial commitments to Exit, the Subfranchisor, and the Broker's Council. These obligations could include unpaid fees, outstanding balances on promissory notes, or other financial liabilities incurred during the term of the agreement.

Franchisees should carefully review the franchise agreement to understand the nature and extent of these potential post-termination financial obligations. It is essential to maintain accurate records of all payments and financial transactions with Exit, the Subfranchisor, and the Broker's Council to avoid disputes or misunderstandings upon termination. Understanding these obligations is crucial for managing financial risks associated with the Exit franchise.