If an Exit franchisee is approved to open a second location, what terms apply to that location?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (B) Franchisee may not open a second location or branch office within the Protected Territory without prior written approval of Subfranchisor. A second location or branch office will be subject to all of the terms, fees, and royalties set forth in this Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a franchisee needs prior written approval from the subfranchisor to open a second location or branch office within their protected territory. If approved, the second location or branch office will be subject to all the terms, fees, and royalties outlined in the Franchise Agreement.
This means that the franchisee will need to ensure that they can meet all the obligations for the additional location, including financial and operational requirements. The fees and royalties for the second location will likely impact the franchisee's overall profitability, so careful consideration is needed.
This requirement is fairly standard in franchising, as franchisors want to maintain control over brand standards and ensure that each location is properly supported. Prospective Exit franchisees should carefully review the Franchise Agreement to fully understand the financial and operational obligations associated with opening a second location.