In the Exit Franchise Agreement, what information is inserted for the Subfranchise entity name?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS AGREEMENT is entered into this day of, 20, by and between [insert legal | |||
|---|---|---|---|
| Subfranchise entity name], doing business as [insert Subfranchise trade name] | ("Subfranchisor") and [insert | ||
| name of entity or individual purchasing the franchise – | same name as the cover page], ("Franchisee") whose address | ||
| is [insert address of individual or entity named above as Franchisee]. |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Subfranchise entity name and trade name are inserted into the franchise agreement. The agreement is made between '[insert legal Subfranchise entity name], doing business as [insert Subfranchise trade name]' and '[insert name of entity or individual purchasing the franchise – same name as the cover page], ("Franchisee") whose address is [insert address of individual or entity named above as Franchisee].'
This means that the legal name of the Subfranchise entity, along with the trade name they operate under, will be formally documented in the franchise agreement. Additionally, the franchisee's name and address are also inserted to clearly identify all parties involved in the agreement.
Prospective franchisees should ensure that all legal names, trade names, and addresses are accurately reflected in the agreement to avoid any potential legal complications. This level of detail is typical in franchise agreements to clearly define the roles and responsibilities of each party.