For how long after the termination, assignment, or expiration of the Exit Agreement are post-term covenants in effect?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and Franchisee's shareholders, partners, members, directors, officers and guarantors of this Agreement will not, for a period of one (1) year following the termination, assignment or expiration of this Agreement on their own account or as an employee, agent, consultant, partner, officer, director or shareholder of any other person, firm, entity, limited liability company, partnership or corporation, directly or indirectly,
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are subject to post-term covenants for one year following the termination, assignment, or expiration of the Exit Agreement. These covenants restrict the franchisee and their related parties (shareholders, partners, members, directors, officers, and guarantors) from engaging in activities that compete with Exit.
Specifically, for one year after the agreement ends, the franchisee is restricted from activities such as owning, operating, or being involved with any real estate business that competes with Exit. This restriction applies to the franchisee's own account or as part of another entity.
These post-term covenants are designed to protect Exit's business interests and prevent former franchisees from using the knowledge and experience gained during their franchise term to directly compete with the brand. Franchisees should carefully consider these restrictions before entering into an agreement, as they could limit their business opportunities after the franchise relationship ends.