Can the Franchise granted to the Franchisee under the Exit Agreement be used at any location other than the approved location?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
3. INITIAL OFFICE; RELOCATION
3.1. Initial Office
- (A) Franchisee shall cause a Franchise office to be opened and operating within the Protected Territory within a period not to exceed one hundred and twenty (120) calendar days from the date of this Agreement. Franchisee shall select a desired location for its Franchise office or any branch office within its Protected Territory and shall submit the location to Subfranchisor for approval, which approval shall not be unreasonably withheld. Subfranchisor will notify Franchisee of its approval or disapproval within thirty (30) days of its receipt of the request for approval. Franchisee may not proceed to open and operate a Franchise office, unless Subfranchisor has consented to the site. Franchisee is responsible for complying with all local ordinances and is responsible for obtaining all building permits and any other required permits. Franchisee must obtain and install all required equipment, signs, fixtures and supplies to furnish its office. The Franchise granted to you under this Agreement may not be used, directly or indirectly, at any location other than the location approved pursuant to this Section.
- (B) The Franchise office shall contain a minimum of between seven hundred and fifty (750) square feet to two thousand square feet (2,000) (leased or purchased), determined based on the size of the Protected Territory and shall be equipped with furniture, administrator, phones, and office equipment including computer, specific software and fax machine necessary to conduct the Franchise in accordance with the System. If Franchisee has not selected an office site, if Franchisee and Subfranchisor cannot agree on a site, or if Franchisee has not opened its office within one hundred twenty (120) days after it signed a Franchise Agreement, Subfranchisor may declare this Franchise Agreement null and void, without the return of any Initial Franchise Fee or other amounts paid to Subfranchisor or Franchisor.
- (C) All costs associated with the acquisition, leasing and operation of the Franchise office shall be the sole responsibility of Franchisee.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the franchise granted to a franchisee under the Exit agreement cannot be used at any location other than the location approved by the subfranchisor. The franchisee must select a location for their franchise office within their protected territory and submit it to the subfranchisor for approval, which cannot be unreasonably withheld. The subfranchisor has 30 days to notify the franchisee of approval or disapproval.
The Exit franchisee is responsible for complying with all local ordinances and obtaining all necessary building and other required permits. They must also acquire and install all required equipment, signs, fixtures, and supplies to furnish the office.
The franchise office itself must be a minimum of 750 to 2,000 square feet, determined based on the size of the protected territory. It must be equipped with furniture, an administrator, phones, and office equipment, including a computer, specific software, and a fax machine, necessary to conduct the franchise in accordance with the Exit system. If the franchisee does not select an office site, if the franchisee and subfranchisor cannot agree on a site, or if the franchisee has not opened its office within 120 days after signing the Franchise Agreement, the subfranchisor may declare the Franchise Agreement null and void, without returning any initial franchise fee or other amounts paid.