Is an Exit franchisee required to comply with the procedures and requirements regarding Approved Suppliers?

According to Exit's 2025 Franchise Disclosure Document, franchisees must comply with the procedures and requirements regarding Approved Suppliers. The Training Manual establishes the standards by which Exit or its affiliate has established Approved Suppliers. It also specifies the types of products and services for which Approved Suppliers must be utilized, and the procedure by which Approved Suppliers may be added to the list of Approved Suppliers.

An Approved Supplier is defined as any supplier or vendor of goods and/or services that are required or permitted to be utilized by the franchisee in the operation of the franchise. These suppliers must be approved by the subfranchisor and have signed Exit's Approved Supplier Agreement or a Limited Supplier Agreement.

This requirement ensures that Exit franchisees maintain consistent quality and standards across all locations. By using approved suppliers, Exit can control the quality of products and services, protect its brand reputation, and potentially negotiate better pricing for franchisees. However, it also means that franchisees have limited autonomy in choosing their own suppliers, which could impact their costs and operational flexibility.