What evidence is considered conclusive in determining 'Permanent Disability' for an Exit franchisee?

According to Exit's 2025 Franchise Disclosure Document, the determination of 'Permanent Disability' for a franchisee is primarily made by the Subfranchisor. The FDD defines 'Permanent Disability' or 'Permanently Disabled' as a mental or physical disability that prevents the individual from performing the essential duties of their employment, as reasonably determined by the Subfranchisor. This definition sets the stage for how Exit assesses whether a franchisee is unable to continue operating their business due to disability.

However, the document also specifies that the payment of benefits for Permanent Disability under a disability insurance policy serves as conclusive evidence of the existence of the Permanent Disability. This means that if a franchisee is receiving disability benefits, Exit will accept this as proof of their disability status. It is important to note that while disability insurance payments are considered conclusive evidence, they are not required to establish Permanent Disability for the purposes of the Franchise Agreement. The Subfranchisor can still determine Permanent Disability even if the franchisee is not receiving disability insurance benefits.

In practical terms, this means an Exit franchisee who becomes disabled has two potential avenues for demonstrating their condition. They can either rely on the Subfranchisor's assessment of their inability to perform their duties, or they can provide evidence of disability insurance payments. The latter offers a more straightforward and definitive path, as it is considered conclusive evidence. This clause provides a degree of clarity and certainty for franchisees facing potential disability, while also allowing Exit to make determinations based on other forms of evidence if necessary.