Is the Exit franchisee entitled to reimbursement or remuneration for assisting the Subfranchisor or Exit in resolving conflicts related to infringements of the Proprietary Marks?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (B) Franchisee shall promptly report all likely infringements of the Proprietary Marks to Subfranchisor and shall assist Subfranchisor or EXIT in resolving conflicts, without reimbursement or remuneration. Subfranchisor will investigate likely infringements and will undertake such efforts to protect the Proprietary Marks as it deems reasonable and appropriate. Subfranchisor, at its sole option, may undertake the prosecution of any such infringements and shall bear all costs of any such prosecution, except as otherwise provided in this Agreement.
- (C) If Subfranchisor or EXIT undertakes the defense or prosecution of any litigation relating to the Proprietary Marks, Franchisee agrees, without reimbursement or remuneration, to execute any and all documents and to do such acts and things as, in the opinion of legal counsel for Subfranchisor or EXIT, may be reasonably necessary for Franchisee to assist in such defense or prosecution.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are required to assist the Subfranchisor or Exit in resolving conflicts related to infringements of the Proprietary Marks. However, Exit franchisees will not be reimbursed or receive remuneration for providing this assistance. This means franchisees must dedicate time and resources to help resolve these conflicts without expecting any financial compensation for their efforts.
This requirement places a responsibility on the franchisee to actively participate in protecting Exit's Proprietary Marks. While the Subfranchisor is primarily responsible for investigating infringements and undertaking efforts to protect the marks, the franchisee's assistance is mandatory. This assistance may involve providing information, gathering evidence, or executing documents as needed for the defense or prosecution of litigation related to the Proprietary Marks.
The franchisee's agreement to assist without reimbursement or remuneration highlights the importance Exit places on protecting its brand and Proprietary Marks. It also suggests that Exit expects franchisees to view the protection of these marks as a shared responsibility, contributing to the overall success and reputation of the Exit franchise system.
Prospective franchisees should consider this obligation when evaluating the Exit franchise opportunity. While the Subfranchisor bears the costs of prosecuting infringements, the franchisee's uncompensated time and effort in assisting with conflict resolution should be factored into the overall investment and operational considerations.