What information must an Exit franchisee provide to the Subfranchisor regarding their employment after termination?

According to Exit's 2025 Franchise Disclosure Document, for a period of three years following the termination or non-renewal of the Franchise Agreement, a franchisee must keep the Subfranchisor informed of their current business and residence address and telephone numbers. Additionally, they must provide the business address and phone number of their employer, if applicable.

This requirement ensures that the Subfranchisor can maintain contact with the former franchisee and monitor their activities, particularly concerning potential competition or misuse of confidential information. It allows Exit to track compliance with post-termination obligations, such as non-compete agreements, and to ensure a smooth transition of the business.

This type of ongoing disclosure is not uncommon in franchising, especially when non-compete clauses are in effect. Franchise agreements often include provisions that require former franchisees to provide updated contact information and employment details to protect the franchisor's interests and enforce any post-termination restrictions. Franchisees should be aware of these obligations and prepared to comply with them for the specified period after the agreement ends.