For the Exit franchise agreement, what is the required method for any modification, change, addition, rescission, release, amendment or waiver to be valid?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
40. NO ORAL MODIFICATION
No oral modification, change, addition, rescission, release, amendment or waiver of this Agreement and no approval, consent or authorization required by any provision of this Agreement may be made except by a written agreement subscribed to by authorized signatories of the Subfranchisor and Franchisee.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, any modification, change, addition, rescission, release, amendment, or waiver to the franchise agreement must be in writing. The written agreement must be signed by authorized representatives of both the Subfranchisor and the Franchisee to be considered valid.
This requirement for written modifications is a standard practice in franchising. It ensures that all parties are clear on any changes to the original agreement and provides a documented record of those changes. This helps to prevent misunderstandings or disputes that could arise from verbal agreements or informal understandings.
As a prospective Exit franchisee, it is crucial to understand that any promises or assurances made by the franchisor or its representatives that are not documented in a written amendment to the franchise agreement are not legally binding. Therefore, it is important to ensure that any negotiated changes or additions to the agreement are properly documented and signed by both parties before proceeding with the franchise investment.