factual

Does the Exit franchise agreement assign any monetary value to the franchisee's activities under the Proprietary Marks upon expiration or termination of the agreement?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

(A) Franchisee acknowledges EXIT's claim to the exclusive right, title and interest to the Proprietary Marks and acknowledges that any and all goodwill associated with and identified with the Proprietary Marks, including any goodwill which may result from Franchisee's use of the Proprietary Marks, shall inure directly and exclusively to the benefit of EXIT. On the expiration or termination of this Agreement, no monetary value shall be assigned as attributable to or associated with Franchisee's activities as a Franchisee under the Proprietary Marks.

Source: Item 23 — RECEIPT (FDD pages 42–235)

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, the franchise agreement does not assign any monetary value to a franchisee's activities related to the Proprietary Marks upon the agreement's expiration or termination. The FDD states that all goodwill associated with the Proprietary Marks, including any goodwill resulting from the franchisee's use of these marks, exclusively benefits Exit.

This means that when the franchise agreement ends, whether through expiration or termination, the franchisee will not receive any financial compensation for the brand recognition or customer loyalty they helped build under the Exit name. The franchisee acknowledges Exit's exclusive right to the Proprietary Marks and the associated goodwill.

This is a common practice in franchising, as the franchisor owns the brand and its associated intellectual property. Franchisees benefit from using the brand during the term of the agreement, but they do not gain ownership or a right to compensation for its value upon termination. Prospective Exit franchisees should understand that the value they build under the Exit brand ultimately accrues to the franchisor, and they will not be compensated for it when the franchise agreement ends.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.