Does the Exit Franchise Agreement specify who the agreement is between?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (H) Franchise Agreement: "Franchise Agreement" means that agreement between Subfranchisor and Franchisee, which grants to Franchisee the right to use and be a part of the EXIT System, as amended from time to time.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Franchise Agreement is between the Subfranchisor and the Franchisee. The agreement grants the franchisee the right to use and be a part of the Exit system, as it may be amended over time.
This definition clarifies the roles of each party involved in the franchising relationship. The subfranchisor grants the rights to use the Exit system, while the franchisee receives those rights and integrates into the system. This is a standard structure in many franchise systems, where a subfranchisor acts as an intermediary between the main franchisor and the individual franchisees.
Prospective franchisees should understand that their direct contractual relationship is with the subfranchisor, not directly with Exit itself. This means the subfranchisor is the primary point of contact for support, and is responsible for enforcing Exit's standards within their territory. Franchisees should carefully evaluate the capabilities and reputation of the subfranchisor before entering into an agreement.