Where in the Exit FDD can I find information about proprietary information?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 14: PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION]
ITEM 14 PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION
EXIT Realty Upper Midwest does not own or grant you the right to use any item governed by a patent but does permit you to use Proprietary Information in the Training Manuals, and copyrighted material owned by EXIT while you are a Franchisee. See ITEM 11 of this Disclosure Document. Although EXIT does not own federally determined rights in copyright materials and has not filed an Application for Copyright Registration for the Training Manuals, the information in the Training Manuals is proprietary, and EXIT claims a copyright to the entire Training Manuals and in various advertising and sales promotion materials used in connection with the EXIT System. You may not copy any of EXIT's confidential information or give it to a third party, except as EXIT authorizes. You must also promptly tell us when you learn about unauthorized use of this Proprietary Information. EXIT Realty Upper Midwest is not obligated to take any action but will respond to this information as we think appropriate. EXIT has the right to control any litigation involving Proprietary Information. EXIT or EXIT Realty Upper Midwest will defend you for claims by a third party concerning your use of this Proprietary Information.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 27)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Item 14, titled "Patents, Copyrights, and Proprietary Information," provides details regarding Exit's proprietary information. This section clarifies that while Exit Realty Upper Midwest does not grant franchisees the right to use any patented items, it does allow the use of proprietary information found in training manuals and copyrighted material owned by Exit during the franchise term. Item 11 of the FDD also contains relevant information.
The FDD states that although Exit does not have federally determined rights in copyright materials and has not filed for copyright registration for the training manuals, the information within these manuals is considered proprietary. Exit asserts a copyright to the entire training manuals and various advertising and sales promotion materials associated with the Exit system. Franchisees are prohibited from copying Exit's confidential information or sharing it with third parties without authorization.
Furthermore, franchisees are obligated to promptly report any unauthorized use of proprietary information they become aware of, though Exit Realty Upper Midwest is not obligated to take action but will respond as deemed appropriate. Exit retains the right to control any litigation involving proprietary information and will defend franchisees against third-party claims related to their use of this proprietary information.