Is the Exit franchisee entitled to reimbursement or remuneration for executing documents and performing acts to assist in the defense or prosecution of litigation relating to the Proprietary Marks?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
(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 in the defense or prosecution of litigation related to the Proprietary Marks. Specifically, if Exit or its subfranchisor undertakes the defense or prosecution of any litigation relating to the Proprietary Marks, the franchisee must execute documents and perform necessary actions to assist in the defense or prosecution.
This requirement means that an Exit franchisee may be compelled to participate in legal proceedings involving the brand's trademarks, potentially incurring costs such as time spent gathering documents or providing information. However, the franchisee will not be compensated for these efforts.
This lack of reimbursement could be a financial burden for franchisees, especially if the litigation requires significant involvement. Prospective franchisees should factor this potential uncompensated obligation into their assessment of the franchise opportunity. It is advisable to discuss with Exit the typical scope and frequency of such legal assistance and the potential time commitment involved.