factual

Is an Exit franchisee permitted to open a second location or branch office within their Protected Territory, and if so, what approvals are required?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (B) Franchisee may not open a second location or branch office within the Protected Territory without prior written approval of Subfranchisor. A second location or branch office will be subject to all of the terms, fees, and royalties set forth in this Franchise Agreement.

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

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, a franchisee is not automatically permitted to open a second location or branch office within their protected territory. The franchisee must first obtain prior written approval from the subfranchisor.

If approval is granted, the second location or branch office will be subject to all the terms, fees, and royalties outlined in the Franchise Agreement. This means the franchisee will incur additional costs and obligations for each additional location they operate.

This requirement ensures that Exit maintains control over its brand and service standards within each territory. It also allows the subfranchisor to assess whether the franchisee has the capacity and resources to successfully manage an additional location without compromising the performance of their existing franchise. Prospective franchisees should consider these requirements and potential costs when evaluating the feasibility of expanding their Exit business within their protected territory.

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.