As an Exit franchisee, what is the required action if I become aware of an infringement on Exit's trademarks?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify EXIT Realty Upper Midwest immediately when you learn about an infringement of or challenge to your use of EXIT's trademarks. EXIT Realty Upper Midwest will take the action we think is appropriate. EXIT has the sole right to manage and resolve disputes with third parties concerning the trademarks. EXIT will defend you against any claim opposing your use of the trademarks. You may tender the defense of any trademark action to EXIT and EXIT Realty Upper Midwest, and EXIT will defend you in the action, at our cost, but only if you send the lawsuit to EXIT within seven (7) days after you receive it. You may hire your own attorney to defend you in this action, but then you must pay all your own legal expenses. You may not contest EXIT's rights to its trademarks, trade secrets, or proprietary and distinctive system.
EXIT shall have the sole authority to add to, delete or modify the trademarks from time to time. You must modify or discontinue a trademark, at your own expense, if EXIT Realty Upper Midwest notifies you to discontinue or modify your use of a trademark. You must comply within a reasonable time, if we notify you to discontinue or modify your use of any trademark. EXIT Realty Upper Midwest will have no liability or obligation as to your modification or discontinuance of any mark.
Source: Item 13 — TRADEMARKS (FDD pages 25–27)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, if you, as an Exit franchisee, become aware of any infringement or challenges to the use of Exit's trademarks, you must immediately notify Exit Realty Upper Midwest. After you notify them, Exit Realty Upper Midwest will decide what action they deem appropriate to take. Exit retains the sole right to manage and resolve any disputes with third parties regarding the trademarks.
Exit will defend you against any claims opposing your use of the trademarks. If a lawsuit is filed against you regarding trademark usage, you have the option to tender the defense to Exit and Exit Realty Upper Midwest. To have Exit defend you at their cost, you must send them the lawsuit within seven days of receiving it. Alternatively, you can hire your own attorney to defend you, but in that case, you will be responsible for all your legal expenses.
As an Exit franchisee, you are prohibited from contesting Exit's rights to its trademarks, trade secrets, or proprietary system. Exit also has the authority to modify or discontinue trademarks, and you are obligated to comply with any notifications to discontinue or modify your use of a trademark at your own expense within a reasonable time frame. Exit Realty Upper Midwest assumes no liability for any costs incurred due to the modification or discontinuation of any mark.