What happens to the Exit Subfranchisor's interest in the Agreement if it expires or is terminated by Exit?

According to Exit's 2025 Franchise Disclosure Document, if the Subfranchisor's interest in the Agreement expires or is terminated by Exit for any reason, the Subfranchisor's interest in the Agreement will transfer to Exit. Following the transfer, Exit, or its assignee, will assume the Subfranchisor's obligations under the Agreement.

This means that if Exit terminates its agreement with the Subfranchisor, Exit takes over the Subfranchisor's role and responsibilities in relation to the Franchisee. This could include providing support, collecting fees, and ensuring compliance with Exit's standards. For a franchisee, this means that the party they deal with could change from the Subfranchisor to Exit itself.

This transfer of interest and obligations is a significant point for potential franchisees to consider. It ensures continuity of the franchise operation even if the Subfranchisor's agreement with Exit ends. However, it also means that the franchisee needs to be prepared to potentially work directly with Exit, rather than the Subfranchisor, which could change the dynamic of their business relationship.