Can Exit grant franchises or licenses to others allowing them to use the Proprietary Marks?
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, Exit retains the right to grant franchises or licenses to others, allowing them to use the Proprietary Marks. The franchise agreement specifies that the license granted to a franchisee to use the Proprietary Marks is non-exclusive. This means Exit has the authority to grant additional franchises or licenses to other parties, allowing them to use the same Proprietary Marks.
Exit also reserves the right to license the Proprietary Marks to others beyond just franchisees and subfranchisors. Furthermore, Exit can develop and license other marks in conjunction with systems other than the Exit System. These actions can be done under any terms and conditions that Exit deems advisable.
For a prospective Exit franchisee, this means that Exit can authorize others to operate under the same brand and marks, potentially increasing competition. It also clarifies that Exit has broad discretion in managing and licensing its trademarks, which could lead to the introduction of new brands or systems that might compete with existing franchisees.