Is an Exit franchisee authorized to make any contract on behalf of the Subfranchisor?

According to Exit's 2025 Franchise Disclosure Document, the agreement between the subfranchisor and franchisee establishes a specific relationship. The franchisee operates as an independent contractor and is not authorized to act as an agent, legal representative, partner, employee, or servant of the subfranchisor for any purpose.

Specifically, the Exit franchisee is explicitly prohibited from making any contract, agreement, warranty, or representation on behalf of the subfranchisor. Furthermore, the franchisee cannot create any obligation, whether express or implied, that would bind the subfranchisor. This underscores the independent nature of the franchisee's business operations.

This arrangement protects the subfranchisor from liabilities arising from the franchisee's actions. The franchisee is responsible for their own acts, omissions, contracts, debts, and other obligations. This independent contractor status is a common arrangement in franchising, designed to clearly delineate the responsibilities and liabilities of each party involved.