Is an Exit Franchisee's legal name allowed to include the name 'EXIT'?

According to Exit's 2025 Franchise Disclosure Document, a franchisee's legal name is not allowed to include the name "EXIT". However, the franchisee must conduct business under a trade name that includes the word "EXIT" along with either "Realty" or "Real Estate".

This distinction between the legal name and the trade name is important for several reasons. The legal name is the official name of the business entity, while the trade name is the name under which the business operates and markets itself to the public. By requiring franchisees to use "EXIT" in their trade name, Exit ensures brand consistency and recognition across all franchise locations. At the same time, prohibiting "EXIT" in the legal name helps to differentiate the franchisee's business entity from the Exit franchisor, clarifying that the franchisee is an independent business owner.

An Exit franchisee needs to obtain written approval from the subfranchisor for their trade name before using it. The word "EXIT" must be positioned at the beginning of the name and must always be in capital letters. The trade name cannot contain any arbitrary, whimsical, invented, or suggestive words or acronyms. Franchisees must also file for a certificate of fictitious or assumed name to inform the public that they are operating as an independent business under the franchise agreement. Franchisees cannot change their trade name or legal name without prior written consent from the subfranchisor.