Is an Exit Franchisee required to file for a certificate of fictitious or assumed name?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will file for a certificate of fictitious or assumed name in the manner required by applicable state law so as to notify the public that Franchisee is operating its Franchise as an independent business pursuant to this Agreement. Franchisee shall have no right to use or register the Trade Style name apart from the right granted under this Agreement, and all such rights shall cease upon the termination or expiration of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are required to file for a certificate of fictitious or assumed name. This filing must be done in accordance with applicable state law. The purpose of this filing is to notify the public that the franchisee is operating their Exit franchise as an independent business under the terms of the Franchise Agreement.
The trade name used by the franchisee must include the word "EXIT" along with either "Realty" or "Real Estate," and the subfranchisor must provide written approval of the trade style name before any commitments are made. The word "EXIT" must be at the beginning of the name and in all caps. The trade name cannot contain any arbitrary, whimsical, invented, or suggestive words or acronyms.
This requirement ensures that the Exit brand is properly represented and that the public is aware of the franchisee's independent status. It also protects the integrity of the Exit trade name and prevents unauthorized use. Upon termination or expiration of the Franchise Agreement, the franchisee's right to use the trade style name ceases.