Where in the Exit Franchise Agreement can I find details regarding the initial office and relocation?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
3. INITIAL OFFICE; RELOCATION
3.1. Initial Office
- (A) Franchisee shall cause a Franchise office to be opened and operating within the Protected Territory within a period not to exceed one hundred and twenty (120) calendar days from the date of this Agreement. Franchisee shall select a desired location for its Franchise office or any branch office within its Protected Territory and shall submit the location to Subfranchisor for approval, which approval shall not be unreasonably withheld. Subfranchisor will notify Franchisee of its approval or disapproval within thirty (30) days of its receipt of the request for approval. Franchisee may not proceed to open and operate a Franchise office, unless Subfranchisor has consented to the site. Franchisee is responsible for complying with all local ordinances and is responsible for obtaining all building permits and any other required permits. Franchisee must obtain and install all required equipment, signs, fixtures and supplies to furnish its office. The Franchise granted to you under this Agreement may not be used, directly or indirectly, at any location other than the location approved pursuant to this Section.
- (B) The Franchise office shall contain a minimum of between seven hundred and fifty (750) square feet to two thousand square feet (2,000) (leased or purchased), determined based on the size of the Protected Territory and shall be equipped with furniture, administrator, phones, and office equipment including computer, specific software and fax machine necessary to conduct the Franchise in accordance with the System. If Franchisee has not selected an office site, if Franchisee and Subfranchisor cannot agree on a site, or if Franchisee has not opened its office within one hundred twenty (120) days after it signed a Franchise Agreement, Subfranchisor may declare this Franchise Agreement null and void, without the return of any Initial Franchise Fee or other amounts paid to Subfranchisor or Franchisor.
- (C) All costs associated with the acquisition, leasing and operation of the Franchise office shall be the sole responsibility of Franchisee.
3.2. Approval Needed for Relocation
- (A) Franchisee may, at its sole cost and expense and upon written approval of Subfranchisor, which approval shall not be unreasonably withheld, relocate its Franchise office, provided the new office is located within the Protected Territory and meets the minimum square footage and other requirements set forth in Section 3.1 above.
- (B) Franchisee may not open a second location or branch office within the Protected Territory without prior written approval of Subfranchisor. A second location or branch office will be subject to all of the terms, fees, and royalties set forth in this Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, details regarding the initial office and relocation can be found in Section 3 of the Franchise Agreement, titled "INITIAL OFFICE; RELOCATION."
Specifically, Section 3.1 outlines the requirements for the initial office. A franchisee must have their Exit franchise office opened and operating within 120 calendar days from the date of the agreement. The franchisee is responsible for selecting a location within their protected territory and submitting it to the subfranchisor for approval, which cannot be unreasonably withheld. The office size must be between 750 to 2,000 square feet, depending on the size of the protected territory, and equipped with necessary furniture, administrator, phones, and office equipment. The franchisee bears all costs associated with acquiring, leasing, and operating the office. Failure to secure a site or open the office within 120 days may result in the agreement being voided, without a refund of the initial franchise fee.
Section 3.2 addresses relocation. A franchisee may relocate their office at their own expense, but only with the subfranchisor's written approval, which again cannot be unreasonably withheld. The new office must be within the protected territory and meet the minimum square footage and other requirements outlined in Section 3.1. Furthermore, opening a second location or branch office requires prior written approval from the subfranchisor and is subject to all terms, fees, and royalties in the Franchise Agreement.