Where can I find special state disclosures related to the Exit Franchise Agreement?

According to Exit's 2025 Franchise Disclosure Document, special state disclosures can be found in the state modification provisions within the Franchise Agreement and Disclosure Document. Item 17 of the FDD indicates that several states have statutes that may supersede the standard agreement, particularly concerning termination and renewal rights, dispute resolution venues, and governing law. These states include Arkansas, California, Connecticut, Delaware, Hawaii, Illinois, Indiana, Iowa, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, Rhode Island, Tennessee, Virginia, Washington, and Wisconsin.

This means that the standard terms of the Exit franchise agreement may not fully apply to franchisees in those listed states. Franchisees should carefully review the specific state modifications to understand their rights and obligations, as these may differ significantly from the standard agreement. For example, certain states may have stricter regulations regarding termination of the franchise agreement, providing franchisees with more protection against termination without cause.

It is important for prospective Exit franchisees to consult with legal counsel to fully understand the implications of these state-specific disclosures. This will help ensure they are aware of any additional rights or restrictions that may apply to their franchise agreement based on the state in which they operate. Understanding these nuances can help franchisees avoid potential disputes and ensure compliance with all applicable laws and regulations.

Furthermore, the FDD also mentions that court decisions in these and other states may also supersede the agreements in areas such as termination and renewal of the franchise, dispute resolution venues, and governing laws. This underscores the importance of staying informed about legal precedents in the relevant jurisdiction, as these can also impact the interpretation and enforcement of the franchise agreement.