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In any legal dispute involving Exit, do both parties waive their right to a jury trial?

Q: In any legal dispute involving Exit, do both parties waive their right to a jury trial?

#### **25.4. WAIVER OF JURY TRIAL** **THE PARTIES AGREE TO WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTER-CLAIM, WHETHER AT LAW OR EQUITY, REGARDLESS OF WHICH PARTY BRINGS SUIT. THIS WAIVER WILL APPLY TO ANY MATTER WHATSOEVER BETWEEN THE PARTIES WHICH ARISES OUT OF ANY DISPUTE BETWEEN THE PARTIES, INCLUDING, BUT NOT LIMITED TO, ANY ALLEGED BREACH OF, OR DEFAULT IN THE PERFORMANCE OF, ANY OF THE TERMS, COVENANTS OR CONDITIONS OF THIS AGREEMENT.** Source: Item 23 — RECEIPT (FDD pages 42–235)

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

25.4. WAIVER OF JURY TRIAL

THE PARTIES AGREE TO WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTER-CLAIM, WHETHER AT LAW OR EQUITY, REGARDLESS OF WHICH PARTY BRINGS SUIT. THIS WAIVER WILL APPLY TO ANY MATTER WHATSOEVER BETWEEN THE PARTIES WHICH ARISES OUT OF ANY DISPUTE BETWEEN THE PARTIES, INCLUDING, BUT NOT LIMITED TO, ANY ALLEGED BREACH OF, OR DEFAULT IN THE PERFORMANCE OF, ANY OF THE TERMS, COVENANTS OR CONDITIONS OF THIS AGREEMENT.

Source: Item 23 — RECEIPT (FDD pages 42–235)

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, both the subfranchisor and the franchisee agree to waive their right to a jury trial in any legal action related to their franchise agreement. This waiver applies regardless of which party initiates the lawsuit and covers any dispute arising from the agreement, including alleged breaches or defaults. This means that any legal disputes will be resolved by a judge rather than a jury.

For a prospective Exit franchisee, this waiver means that they will not have the option of presenting their case to a jury if a dispute arises with the subfranchisor. Jury trials can be more time-consuming and expensive than bench trials (trials before a judge only), but they also offer the potential for a more sympathetic hearing, depending on the circumstances of the case. By agreeing to this waiver, the franchisee gives up the right to have a jury decide the outcome of any legal dispute.

It is important for a potential Exit franchisee to carefully consider the implications of waiving their right to a jury trial. While the franchisor likely believes that this waiver will streamline dispute resolution and reduce costs, the franchisee should assess whether they are comfortable with a judge making all decisions in a legal dispute. Franchisees should seek legal counsel to fully understand the ramifications of this provision before signing the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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