To whom must an Exit franchisee transfer any assumed name certificate after termination, if directed by the Subfranchisor?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 the 2025 Exit Franchise Disclosure Document, upon the termination of the franchise agreement, an Exit franchisee is required to take several actions to disassociate from the Exit brand. Specifically, if directed by the Subfranchisor, the franchisee must file the appropriate forms to abandon or withdraw any assumed name certificate related to the Exit brand. Alternatively, the franchisee may be required to transfer the assumed name certificate to the Subfranchisor.
This obligation ensures that the franchisee ceases using any proprietary marks or trade names associated with Exit after the termination of the agreement. This prevents potential confusion among the public and protects Exit's brand identity. The franchisee must also change its trade name to something completely different from what was used while affiliated with Exit.
In practical terms, this means that if an Exit franchisee operates under a business name that includes the Exit name, they must either legally abandon that name or transfer the rights to it to the Subfranchisor upon termination. This is a standard practice in franchising to maintain brand consistency and prevent former franchisees from trading on the brand's reputation after they are no longer part of the system. The franchisee is responsible for all expenses associated with these changes.