Is an Exit franchisee permitted to use copyrighted material owned by EXIT while they are a franchisee?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
EXIT Realty Upper Midwest does not own or grant you the right to use any item governed by a patent but does permit you to use Proprietary Information in the Training Manuals, and copyrighted material owned by EXIT while you are a Franchisee. See ITEM 11 of this Disclosure Document. Although EXIT does not own federally determined rights in copyright materials and has not filed an Application for Copyright Registration for the Training Manuals, the information in the Training Manuals is proprietary, and EXIT claims a copyright to the entire Training Manuals and in various advertising and sales promotion materials used in connection with the EXIT System. You may not copy any of EXIT's confidential information or give it to a third party, except as EXIT authorizes. You must also promptly tell us when you learn about unauthorized use of this Proprietary Information. EXIT Realty Upper Midwest is not obligated to take any action but will respond to this information as we think appropriate. EXIT has the right to control any litigation involving Proprietary Information. EXIT or EXIT Realty Upper Midwest will defend you for claims by a third party concerning your use of this Proprietary Information.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD page 27)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit Realty Upper Midwest permits franchisees to use copyrighted material owned by Exit while they are a franchisee. Exit does not own or grant franchisees the right to use any item governed by a patent. However, Exit does allow the use of proprietary information found in the training manuals.
Although Exit does not have federally determined rights in copyright materials and has not filed for copyright registration for the training manuals, the information within them is considered proprietary. Exit claims a copyright to the entire training manuals and various advertising and sales promotion materials used in connection with the Exit system.
Exit franchisees are not allowed to copy any of Exit's confidential information or provide it to a third party unless authorized by Exit. Franchisees must promptly inform Exit about any unauthorized use of proprietary information. Exit Realty Upper Midwest has the right to control any litigation involving proprietary information and will defend franchisees against third-party claims concerning their use of this information.