What are the exceptions to the abandonment clause for the Exit franchise?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) Franchisee voluntarily abandons the franchise by failing to operate the franchise in accordance with the terms of this Agreement, within the Protected Territory for a period of ten (10) consecutive days, or for twenty (20) days in any period of thirty (30) consecutive days, unless such failure is due to fire, flood, earthquake or similar cause beyond Franchisee's control.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a franchisee can be considered to have abandoned the franchise if they fail to operate it within the Protected Territory for ten consecutive days, or for twenty days within any thirty-day period. However, there is an exception to this abandonment clause.
The FDD states that the failure to operate the franchise will not be considered abandonment if it is due to fire, flood, earthquake, or a similar cause beyond the franchisee's control. This means that if the franchisee's inability to operate the business is due to unforeseen and uncontrollable events like natural disasters, Exit will not consider it a voluntary abandonment of the franchise.
This clause protects the franchisee from termination in situations where external forces prevent them from running the business. It is important for prospective franchisees to understand these exceptions, as abandonment can lead to termination of the franchise agreement. Franchisees should maintain thorough records and communication with Exit in the event of any such incidents to ensure compliance with the agreement and protect their investment.