What must an Exit franchisee do to their trade name after termination to distinguish themselves from Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
oming a part of the System.
- (C) Franchisee shall immediately cease and refrain from using the System, or any parts thereof, and Franchisee shall immediately cease and refrain from holding itself out to the public in any way as a member of or as a former member of the System or as a Franchisee, Affiliate or operator of the System.
- (D) Franchisee shall immediately distinguish its operations from that of EXIT, Subfranchisor, and of EXIT Affiliates so as to avoid every possibility of any confusion to the public.
- (E) Franchisee, at its expense, shall make or cause to be made such changes in signs, telephone numbers, buildings or structures as EXIT or Subfranchisor may direct in order to distinguish Franchisee effectively from its former appearance and from other EXIT Affiliates. The changes shall include a complete change in the trade name from that under which Franchisee conducted its business while affiliated with the System. If Franchisee shall, upon request, fail or omit to make or cause to be made the changes within ten (10) days, then Subfranchisor shall have the right to enter upon the premises, without liability, and make, or cause to be made, the changes at the expense of Franchisee, which expenses shall be paid by Franchisee upon demand.
- (F) Franchisee shall, at Subfranchisor's direction, file the appropriate forms to abandon and/or withdraw any assumed name certificate, to cease all activities with and claims to ownership of any trade or assumed name containing any Proprietary mark or to transfer the same to Subfranchisor, and/or to change the name of its corporation, partnership, or affiliate to eliminate any reference to the System.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a franchisee must immediately take steps to differentiate their operations from Exit, its subfranchisor, and its affiliates to prevent public confusion. This includes making changes to signs, telephone numbers, and buildings as directed by Exit or the subfranchisor to clearly distinguish the franchisee's former appearance from other Exit affiliates. The franchisee is required to implement a complete change in the trade name used during their affiliation with the Exit system.
Specifically, the franchisee must file forms to abandon any assumed name certificates, cease activities related to trade names containing Exit's proprietary marks, and transfer these names to the subfranchisor. They also need to change the name of their corporation, partnership, or affiliate to remove any reference to the Exit system. Furthermore, the franchisee is prohibited from using the term "EXIT" or any confusingly similar term in any subsequent business venture to avoid creating confusion about their past affiliation with Exit.
If the franchisee fails to make these changes within ten days of the request, Exit's subfranchisor has the right to enter the premises and make the changes at the franchisee's expense, which the franchisee must then pay upon demand. This ensures a clean break and protects Exit's brand identity after the franchise agreement ends. These measures are typical in franchising to protect the brand and prevent consumer confusion.