Where in the Exit franchise agreement can I find information about trademark and proprietary information obligations?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
8. PROPRIETARY MARKS
8.1. Grant of Non-Exclusive License of Proprietary Marks to Franchisee
(A) Subfranchisor, having been granted the right to do so by EXIT, grants to Franchisee, and Franchisee accepts, a non-exclusive license to use the Proprietary Marks (as defined in Section 43), for the purpose of operating
a Franchise pursuant to the terms and conditions of this Agreement, and for no other purpose. Subfranchisor and Franchisee expressly agree that ownership, right and title to the Proprietary Marks, regardless of source, are automatically vested in and shall remain solely and exclusively the property of EXIT, and are provided to Franchisee by Subfranchisor in confidence. Franchisee agrees to keep all of the Proprietary Marks in confidence, not infringe on EXIT's rights in the Proprietary Marks, not use them in any manner unless expressly authorized by EXIT, and not disclose them without the prior written consent of Subfranchisor, except as provided in this Agreement. This license is contemporaneous and coterminous with this Agreement and is granted solely in the context of this Agreement. Franchisee shall only use the Proprietary Marks with the SM, TM or ® symbols and designations, as applicable.
(B) Franchisee understands and agrees that its license to use the Proprietary Marks is non-exclusive. EXIT in its sole discretion has the right to grant franchises or licenses to others and to license to others the right to use the Proprietary Marks in addition to those franchises and licenses already granted to other franchisees and subfranchisors. EXIT may develop and license other marks in conjunction with systems other than the EXIT System, on any terms and conditions EXIT deems advisable.
8.2. Substitution; Modification
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 18–19)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, details regarding trademark and proprietary mark obligations are found in Section 8, titled "Proprietary Marks," of the franchise agreement. Specifically, Section 8.1(A) outlines the non-exclusive license granted to the franchisee to use Exit's proprietary marks for operating the franchise, emphasizing that ownership of these marks remains solely with Exit. Franchisees must maintain the confidentiality of these marks, avoid infringing on Exit's rights, and only use them as expressly authorized.
Section 8.1(B) clarifies that the franchisee's license to use the Proprietary Marks is non-exclusive, meaning Exit retains the right to grant similar licenses to others. Exit can also develop and license other marks for different systems. This is a standard practice in franchising, allowing the franchisor to expand its brand reach and explore new business avenues.
Section 8.2 addresses potential modifications or substitutions of the proprietary marks. Section 36 discusses injunctive relief, which Exit may seek to protect its proprietary marks and the Exit System. This section also states that violations of the agreement pertaining to proprietary marks can cause irreparable injury to the Exit System, justifying injunctive relief. These measures are in place to protect Exit's brand identity and prevent unauthorized use of its intellectual property.