Is an Exit franchisee prohibited from soliciting other Exit franchisees to terminate their relationship with Exit after termination?

According to Exit's 2025 Franchise Disclosure Document, a franchisee is restricted from soliciting or inducing any Exit franchisee to terminate or not renew their relationship with Exit after the termination or expiration of their franchise agreement. This restriction also applies to equity holders in any entity that is an Exit franchisee at the time of termination or expiration.

This provision is designed to protect Exit's franchise system by preventing former franchisees from actively disrupting the network. By preventing solicitation, Exit aims to maintain the stability of its franchisee base and protect its brand reputation. This type of restriction is common in franchising to ensure that departing franchisees do not undermine the ongoing operations of the franchise system.

For a prospective Exit franchisee, this means that after leaving the system, they cannot actively recruit other franchisees to also leave or not renew their agreements. This restriction is in place to protect the franchisor's investment in its brand and the relationships it has with its franchisees. The franchisee acknowledges that these covenants are reasonable and necessary to protect Exit and its franchises if the agreement expires or is terminated for any reason.