What is a franchisee's obligation if Exit requests an assignment of rights to System improvements developed by the Exit franchisee?

According to Exit's 2025 Franchise Disclosure Document, any improvements to the Exit system developed by a franchisee, their employees, or agents automatically become the sole and exclusive property of Exit. This includes the right for Exit to adopt and perfect these improvements without providing any compensation to the franchisee.

Furthermore, if Exit requests it, the franchisee, their employees, or agents are obligated to assign any and all rights to these improvements to Exit. This means that the franchisee must legally transfer ownership of the improvements to Exit upon request.

This clause is fairly standard in franchising, as franchisors want to maintain control over their brand's intellectual property and ensure consistency across all franchise locations. While the franchisee may have conceived the idea, the franchise agreement stipulates that the franchisor benefits from it without directly compensating the franchisee. Prospective franchisees should consider this when deciding whether to invest in an Exit franchise, understanding that any system improvements they develop will belong to Exit.