factual

Is the Exit franchisee entitled to reimbursement or remuneration for assisting the Subfranchisor or Exit in resolving conflicts related to Proprietary Marks?

Exit Franchise · 2025 FDD

Answer 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 not entitled to reimbursement or remuneration for assisting the Subfranchisor or Exit in resolving conflicts related to Proprietary Marks. The franchisee is required to report any likely infringements of the Proprietary Marks to the Subfranchisor and must assist in resolving conflicts.

Furthermore, if the Subfranchisor or Exit undertakes the defense or prosecution of any litigation relating to the Proprietary Marks, the franchisee must execute documents and perform actions necessary to assist in the defense or prosecution, without expecting any reimbursement or remuneration.

This means that as an Exit franchisee, you are obligated to help protect the brand's Proprietary Marks at your own expense. This could involve time and effort on your part, with no direct compensation. It is important to factor this potential cost into your overall investment and operational considerations.

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.