If an Exit franchisee fails to make required changes to distinguish themselves after termination, how many days does the Subfranchisor have to enter the premises and make the changes?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee shall, upon request, fail or omit to make or cause to be made the changes within ten (10) days, then Subfranchisor shall have the right to enter upon the premises, without liability, and make, or cause to be made, the changes at the expense of Franchisee, which expenses shall be paid by Franchisee upon demand.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, after termination, a franchisee must take immediate steps to differentiate their operations from Exit to avoid public confusion. This includes changing signs, telephone numbers, and building structures as directed by Exit or the Subfranchisor.
If the franchisee fails to make these required changes within ten days of the request, the Subfranchisor has the right to enter the premises and make the changes themselves. The franchisee is responsible for covering all expenses incurred by the Subfranchisor in making these changes and must pay these expenses upon demand.
This clause ensures that terminated Exit franchisees do not continue to benefit from Exit's brand recognition or create confusion in the marketplace. It also protects Exit's brand and reputation by ensuring that former franchisees clearly separate themselves from the Exit system. Prospective franchisees should understand that they will be responsible for all costs associated with rebranding after termination, should they fail to do so promptly.