When must an Exit franchisee execute the then-current standard franchise agreement for renewal?

According to Exit's 2025 Franchise Disclosure Document, a franchisee must execute the then-current standard franchise agreement being offered to new franchisees by the subfranchisor on or before the first day of the renewal term. This is a condition for renewing the franchise agreement for either a five or ten-year renewal term, as requested by the franchisee.

In practical terms, this means that if a franchisee wants to continue operating their Exit franchise beyond the initial term, they will be required to sign the franchise agreement that Exit is using at the time of renewal. This new agreement may have different terms and conditions than the original agreement, so it is important for franchisees to carefully review the new agreement before signing it.

This requirement is fairly standard in the franchise industry, as franchisors typically update their franchise agreements periodically to reflect changes in the business environment and legal requirements. By requiring franchisees to sign the current agreement at the time of renewal, Exit ensures that all franchisees are operating under the same terms and conditions. Franchisees should be aware of this requirement and factor it into their decision-making process when considering whether to renew their franchise agreement. They should also seek legal counsel to review the new agreement and understand any changes or implications it may have for their business.