What are the franchisee's obligations after signing the Exit FDD receipt acknowledgement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
43. STATEMENTS, QUESTIONNAIRES AND ACKNOWLEDGMENTS
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
44. COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which together constitute one and the same instrument. This Agreement shall be combined when one or more of the counterparts hereof, individually or taken together, shall bear the signatures of the parties reflected thereon as the signatories (including witness signatures). Execution and delivery of this Agreement by exchange of electronically scanned copies bearing the manual or electronic signature of a party shall constitute a valid and binding execution by that party. Electronically scanned copies shall constitute enforceable original documents.
(Signature page follows)
The parties have executed this Agreement as of the day and year first above written.
EXIT REALTY [trade name], Subfranchisor
(D) Franchisee shall make every effort to protect, maintain and advance the trade name, service mark, and the System, and shall report imitations and infringements upon them.
8.5. Goodwill
(A) Franchisee acknowledges EXIT's claim to the exclusive right, title and interest to the Proprietary Marks and acknowledges that any and all goodwill associated with and identified with the Proprietary Marks, including any goodwill which may result from Franchisee's use of the Proprietary Marks, shall inure directly and exclusively to the benefit of EXIT. On the expiration or termination of this Agreement, no monetary value shall be assigned as attributable to or associated with Franchisee's activities as a Franchisee under the Proprietary Marks.
(B) Franchisee agrees not to make any disparaging remarks, comments or communications, whether oral or written, regarding Subfranchisor or EXIT, or any of their respective officers or directors.
(H) Franchisee shall immediately cause the local telephone company to change all of its telephone numbers and assign the numbers listed for the franchised real estate office to Subfranchisor.
If at the expiration of this Agreement, Franchisee has complied with all of its financial obligations to EXIT and Subfranchisor and it is not otherwise in default, Franchisee shall not be obligated to comply with the provisions of this Subsection 17(H).
(I) Franchisee shall immediately execute all documents necessary to assign all of its EXIT related domain names, internet web sites, web pages, and e-mail addresses to Subfranchisor or its designee.
(J) Franchisee shall, for three (3) years following any termination or non-renewal of this Agreement, keep Subfranchisor advised of its current business and residence address and telephone numbers, as well as the business address and phone number of its employer, if any.
(K) Franchisee shall allow other EXIT Affiliates to solicit Franchisee's Sales Representative for transfer to other operating EXIT offices.
During the ten (10)-day period prior to termination or non-renewal of this Agreement, immediately upon the termination or non-renewal becoming effective and continuing thereafter, Franchisee shall allow other EXIT affiliates to solicit Franchisee's Sales Representatives for transfer to other operating EXIT offices.
Franchisee shall assist in effectuating such transfers and shall permit and facilitate the assignment of the Sales Representatives' listings and pending transactions to the EXIT Affiliate as the Sales Representative's new broker.
(L) Franchisee shall refrain from adopting or using in connection with, or in the name of, any subsequent business the term EXIT or any term confusingly similar to such term or any other term which may have the effect of creating confusion or question regarding his/her affiliation with the System, including without limitation, any name or term with the prefix and/or suffix "EX" or "IT."
(M) Franchisee shall close all transactions under contract at time of termination through EXIT's proprietary system "MEMO" at the time the transaction closes and pay all company development fees, transaction fees and regional development fees that are due.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, signing the FDD receipt acknowledgement does not waive any claims under state franchise law, including fraud, or disclaim reliance on statements made by the franchisor or its representatives. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement.
The franchisee must protect and advance Exit's trade name, service mark, and system, reporting any infringements. Franchisees also agree that all goodwill associated with Exit's Proprietary Marks belongs exclusively to Exit. Upon expiration or termination of the agreement, no monetary value will be assigned to the franchisee's activities related to the Proprietary Marks. Franchisees cannot make disparaging remarks about the subfranchisor or Exit, or their officers or directors.
Upon termination or non-renewal of the Exit franchise agreement, the franchisee has several obligations. They must transfer all phone numbers associated with the franchised real estate office to the subfranchisor, unless they have met all financial obligations and are not in default. Franchisees must also assign all Exit-related domain names, websites, and email addresses to the subfranchisor. For three years following termination, franchisees must keep the subfranchisor informed of their current business and residence addresses and phone numbers, as well as their employer's contact information, if applicable.
Additionally, franchisees must allow other Exit affiliates to solicit their sales representatives for transfer to other Exit offices, especially during the ten days before termination. They must also assist in these transfers and facilitate the assignment of sales representatives' listings and pending transactions to the new Exit affiliate. Franchisees are prohibited from using the term "EXIT" or any confusingly similar term in any subsequent business to avoid confusion about their affiliation with the Exit system. Finally, franchisees must close all transactions under contract at the time of termination through Exit's proprietary system "MEMO" and pay all due company development fees, transaction fees, and regional development fees.