Does the Exit franchise agreement allow the franchisor to impose restrictions on goods/services outside of the Franchise Agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
You must use your office solely for the operation of an EXIT Franchise. You must not use or permit the use of the premises for any other purpose or activities, at any time, without first obtaining our written consent.
You have complete discretion as to the prices to be charged to customers for the offer and sale of any goods and services.
We do not impose any other restrictions in the Franchise Agreement or otherwise, as to the goods or services which you may offer or sell or as to the customers to whom you may offer or sell.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 27)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the franchise agreement places some restrictions on the franchisee regarding goods and services. Specifically, the franchisee must operate their office solely for the Exit franchise and cannot use the premises for any other purpose without written consent from Exit.
Furthermore, the franchisee cannot directly or indirectly engage in any business or use Exit's proprietary marks or system for purposes not outlined in the agreement without prior written consent. If the franchisee wishes to offer services outside of those within the Exit system, such as property management, they must do so through a separate legal entity and not through the Exit franchise itself.
However, Exit does not impose other restrictions in the Franchise Agreement or otherwise, as to the goods or services which you may offer or sell or as to the customers to whom you may offer or sell. Franchisees have complete discretion over the prices charged for goods and services.