Following termination of the Exit franchise, what must a franchisee do to distinguish their operations from Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
tion of all distinguishing characteristics of the System, including but not limited to, trade names, trademarks, service marks, membership marks, certification marks, copyrights, designs, slogans, logos, names, advertising copy or other printed or physical materials now or hereafter displayed, used or becoming a part of the System.
- (C) Franchisee shall immediately cease and refrain from using the System, or any parts thereof, and Franchisee shall immediately cease and refrain from holding itself out to the public in any way as a member of or as a former member of the System or as a Franchisee, Affiliate or operator of the System.
- (D) Franchisee shall immediately distinguish its operations from that of EXIT, Subfranchisor, and of EXIT Affiliates so as to avoid every possibility of any confusion to the public.
- (E) Franchisee, at its expense, shall make or cause to be made such changes in signs, telephone numbers, buildings or structures as EXIT or Subfranchisor may direct in order to distinguish Franchisee effectively from its former appearance and from other EXIT Affiliates. The changes shall include a complete change in the trade name from that under which Franchisee conducted its business while affiliated with the System. If Franchisee shall, upon request, fail or omit to make or cause to be made the changes within ten (10) days, then Subfranchisor shall have the right to enter upon the premises, without liability, and make, or cause to be made, the changes at the expense of Franchisee, which expenses shall be paid by Franchisee upon demand.
- (F) Franchisee shall, at Subfranchisor's direction, file the appropriate forms to abandon and/or withdraw any assumed name certificate, to cease all activities with and claims to ownership of any trade or assumed name containing any Proprietary mark or to transfer the same to Subfranchisor, and/or to change the name of its corporation, partnership, or affiliate to eliminate any reference to the System.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a franchisee must take several steps to differentiate their business from Exit after the franchise agreement terminates. The franchisee must immediately stop using the Exit system and representing themselves as part of the Exit franchise.
To avoid confusion among the public, the franchisee is required to clearly distinguish their operations from Exit, its subfranchisor, and its affiliates. This includes making changes to signs, telephone numbers, and buildings as directed by Exit or its subfranchisor. A key requirement is a complete change in the trade name used during the franchise term.
Furthermore, the franchisee must comply with Exit's directions to abandon any assumed name certificates, cease using any trade names containing Exit's proprietary marks, and change the name of their business entity to remove any reference to the Exit system. The franchisee is also obligated to change their phone number and transfer it to the subfranchisor.