What forms must an Exit franchisee file at the Subfranchisor's direction after termination or non-renewal?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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, after termination or non-renewal of the franchise agreement, a franchisee must file specific forms at the direction of the subfranchisor. These forms are related to abandoning or withdrawing any assumed name certificate, ceasing activities and claims to ownership of any trade or assumed name containing any proprietary mark, or transferring the same to the subfranchisor. Additionally, the franchisee may be required to change the name of its corporation, partnership, or affiliate to eliminate any reference to the Exit system.
This requirement ensures that the franchisee no longer uses Exit's trademarks or trade names after the agreement ends, preventing confusion among the public. It protects Exit's brand identity and goodwill by ensuring that former franchisees do not misrepresent themselves as being affiliated with the Exit brand.
If a franchisee fails to make these changes within ten days of the request, the subfranchisor has the right to enter the premises and make the changes at the franchisee's expense. This provision underscores the importance of complying with the subfranchisor's directives and the potential financial consequences of non-compliance for the franchisee.