If the Exit franchise agreement is owned equally by spouses or partners, what written statement must be provided to the Subfranchisor, and when must it be provided?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
If this Agreement is owned equally by spouses or partners, the spouses or partners shall provide Subfranchisor a written statement at the time this Agreement is signed, signed by both parties stating the name of the final decision maker.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, if the franchise agreement is owned equally by spouses or partners, they must provide the Subfranchisor with a written statement. This statement, signed by both parties, should identify the individual who will serve as the final decision-maker for the franchise.
This written statement must be provided to the Subfranchisor at the time the franchise agreement is signed. This requirement ensures that the Subfranchisor knows who has the authority to make decisions on behalf of the franchise when ownership is shared equally.
For a prospective Exit franchisee, this means that if you are entering into the agreement with a spouse or partner, you need to decide in advance who will be the designated decision-maker and document this in a written statement for the Subfranchisor when signing the agreement. This avoids potential conflicts or confusion in the future regarding the operation and management of the franchise.