Is the Exit franchisee's license to use the Proprietary Marks exclusive or non-exclusive?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
(B) Franchisee understands and agrees that its license to use the Proprietary Marks is non-exclusive. EXIT in its sole discretion has the right to grant franchises or licenses to others and to license to others the right to use the Proprietary Marks in addition to those franchises and licenses already granted to other franchisees and subfranchisors. EXIT may develop and license other marks in conjunction with systems other than the EXIT System, on any terms and conditions EXIT deems advisable.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the franchise agreement grants a non-exclusive license to use the Proprietary Marks. Specifically, the franchisee's license to use Exit's Proprietary Marks is non-exclusive, meaning Exit retains the right to grant additional franchises or licenses to others, allowing them to use the same marks. Exit can also license these marks in conjunction with other systems beyond the Exit System.
This non-exclusive arrangement means that while a franchisee is granted the right to operate under the Exit brand, Exit is not restricted from allowing others to do the same, even in potentially close proximity. This could lead to increased competition between Exit franchisees, as Exit is not obligated to protect any franchisee from other franchisees or licensees using the Proprietary Marks.
For a prospective franchisee, this is a critical point to consider. The lack of exclusivity could impact market share and profitability if Exit decides to expand its presence in the same area through additional franchises or licenses. It would be prudent for a potential franchisee to carefully evaluate the market and competitive landscape, and to inquire about Exit's plans for future expansion in the desired territory.