factual

What must an Exit franchisee do with their domain names and websites after termination?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

sign the numbers listed for the franchised real estate office to Subfranchisor. If at the expiration of this Agreement, Franchisee has complied with all of its financial obligations to EXIT and Subfranchisor and it is not otherwise in default, Franchisee shall not be obligated to comply with the provisions of this Subsection 17(H).

  • (I) Franchisee shall immediately execute all documents necessary to assign all of its EXIT related domain names, internet web sites, web pages, and e-mail addresses to Subfranchisor or its designee.

Source: Item 23 — RECEIPT (FDD pages 42–235)

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, after the termination of the Franchise Agreement, the franchisee must execute all necessary documents to assign all Exit-related domain names, internet websites, web pages, and email addresses to the subfranchisor or their designee. This requirement ensures that Exit maintains control over its brand identity and online presence, preventing potential confusion or misuse of its trademarks by former franchisees.

This obligation is part of the broader post-termination requirements, which include discontinuing the use of all distinguishing characteristics of the Exit system. By transferring the domain names and websites, the franchisee effectively relinquishes any online presence associated with the Exit brand. This is a standard practice in franchising to protect the integrity and uniformity of the brand across all locations.

However, if the franchisee has complied with all financial obligations to Exit and the subfranchisor and is not otherwise in default at the expiration of the agreement, they are not obligated to comply with the requirement to change all of its telephone numbers and assign the numbers listed for the franchised real estate office to Subfranchisor. This exception provides some relief to franchisees who have maintained good standing with the company, though it does not appear to extend to the domain name/website assignment.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.