Where in the Exit franchise agreement are the post-termination obligations detailed?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
17. POST TERMINATION - RIGHTS AND OBLIGATIONS
17.1. Obligations upon Termination or Non-renewal
If this Agreement is terminated or not renewed:
(A) All provisions in this Agreement concerning obligations of Franchisee to EXIT, Subfranchisor and the Broker's Council shall be deemed to survive the termination of this Agreement.
(B) All rights of Franchisee under this Agreement shall terminate and Franchisee shall immediately discontinue all use, imitation or duplication of all distinguishing characteristics of the System, including but not limited to, trade names, trademarks, service marks, membership marks, certification marks, copyrights, designs, slogans, logos, names, advertising copy or other printed or physical materials now or hereafter displayed, used or becoming a part of the System.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 18–19)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Item 17.1 outlines the obligations of the franchisee upon termination or non-renewal of the franchise agreement. It states that all provisions in the agreement concerning the franchisee's obligations to Exit, the Subfranchisor, and the Broker's Council survive the termination. Additionally, all rights of the franchisee under the agreement terminate, and the franchisee must immediately stop using any distinguishing characteristics of the Exit system.
Specifically, after the Exit franchise agreement is terminated or not renewed, the franchisee must change all local telephone numbers and assign the numbers listed for the franchised real estate office to the Subfranchisor. The franchisee must also execute all documents necessary to assign all Exit related domain names, internet websites, web pages, and e-mail addresses to the Subfranchisor or its designee. For three years following any termination or non-renewal, the franchisee must keep the Subfranchisor advised of their current business and residence address and telephone numbers, as well as the business address and phone number of their employer, if any.
Furthermore, Exit franchisees are restricted from engaging in activities that could harm the Exit brand or business. For a period of one year following the termination, assignment, or expiration of the Exit agreement, the franchisee is restricted from involvement with any real estate brokerage business within a ten-mile radius of the former Exit office if that business operates in a substantially similar manner to the Exit System or utilizes a reward system for sponsoring sales representatives. They are also prohibited from soliciting Exit's sales representatives or other franchisees to terminate their relationship with Exit. These covenants aim to protect Exit's market position and goodwill after a franchise agreement ends.