Is an Exit franchisee allowed to open a second location within their protected territory?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (B) Franchisee may not open a second location or branch office within the Protected Territory without prior written approval of Subfranchisor. A second location or branch office will be subject to all of the terms, fees, and royalties set forth in this Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are not automatically permitted to open a second location or branch office within their protected territory. Franchisees must obtain prior written approval from the subfranchisor to open a second location or branch office.
If a franchisee is approved to open a second location, that location will be subject to all the terms, fees, and royalties outlined in the Franchise Agreement. This means the franchisee will incur additional costs and obligations for the second location, similar to those of the initial franchise.
This requirement ensures that Exit maintains control over the density and quality of its franchise locations within a given territory. It also allows the subfranchisor to assess whether an additional location is viable and aligns with the overall market strategy. Prospective franchisees should consider this requirement when evaluating the potential for expansion within their protected territory and factor in the need for subfranchisor approval and the associated costs.