What is the Exit franchisee required to do if the Subfranchisor or Exit undertakes litigation relating to the Proprietary Marks?

According to Exit's 2025 Franchise Disclosure Document, if the Subfranchisor or Exit undertakes the defense or prosecution of any litigation relating to the Proprietary Marks, the franchisee is obligated to assist in such legal efforts. Specifically, the Exit franchisee must execute any and all documents and perform any actions deemed reasonably necessary by the legal counsel for the Subfranchisor or Exit to aid in the defense or prosecution.

This obligation is without reimbursement or remuneration to the Exit franchisee, meaning the franchisee will not be compensated for their time or expenses incurred while assisting with the litigation. This could involve tasks such as providing documentation, giving depositions, or appearing in court, depending on the specifics of the litigation.

This requirement is fairly standard in franchising, as the protection of the brand's proprietary marks is crucial to the entire system. By requiring franchisees to assist in litigation, Exit aims to ensure a unified and comprehensive defense of its trademarks. Prospective franchisees should be aware of this obligation and prepared to fulfill it should the need arise, understanding that it comes without direct compensation.