Is an Exit franchisee allowed to make disparaging remarks about Exit's officers?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (B) Franchisee agrees not to make any disparaging remarks, comments or communications, whether oral or written, regarding Subfranchisor or EXIT, or any of their respective officers or directors.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are prohibited from making disparaging remarks about Exit, its subfranchisor, or their respective officers or directors. This restriction applies to both oral and written communications. This requirement is part of the agreement to protect the goodwill associated with the Exit brand.
This provision means that franchisees must refrain from making negative or critical statements about the company's leadership, regardless of the medium. This restriction aims to maintain a positive image and protect the brand's reputation.
Such a clause is relatively standard in franchise agreements, as franchisors seek to control the narrative surrounding their brand and ensure consistency in messaging. Franchisees should be aware of this restriction and ensure that their communications, both public and private, adhere to this requirement to avoid potential breaches of the franchise agreement.