What kind of release and waiver must an Exit franchisee provide to the Subfranchisor and EXIT for a franchise transfer?

According to Exit's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must provide a full general release and waiver to both the Subfranchisor and EXIT, as well as their affiliates. This release and waiver must be on the then-current form prescribed by either the Subfranchisor or EXIT.

This requirement is one of several conditions that must be met before the Subfranchisor will consent to the transfer. Other conditions include fully complying with all provisions of the Franchise Agreement, curing any defaults, paying all monies due to EXIT, the Subfranchisor, and the Brokers' Council, and providing complete financial information on the franchise to both the proposed transferee and the Subfranchisor.

The inclusion of a general release and waiver is a common practice in franchise agreements. It protects the franchisor and subfranchisor from potential future claims by the outgoing franchisee related to the franchise agreement or the franchise business. Prospective franchisees should carefully review the specific terms of the release and waiver to understand the scope of the rights they are giving up.