How many times can an Exit franchisee fail to comply with the provisions of the agreement before it results in termination with no right to cure?

According to Exit's 2025 Franchise Disclosure Document, a franchisee can fail to comply with the provisions of the franchise agreement three or more times, whether or not the issues were corrected after notice, before Exit has the right to terminate the agreement without an opportunity for the franchisee to cure the default. This means that even if a franchisee initially fixes a problem after being notified, repeated failures to comply with the agreement can still lead to termination.

This policy highlights the importance of consistent compliance with all aspects of the franchise agreement. Franchisees should ensure they fully understand their obligations and have systems in place to maintain compliance. The 'no right to cure' provision after multiple violations is a stricter stance than some other franchises, where repeated violations might still allow for a chance to correct the issue before termination.

For a prospective Exit franchisee, this underscores the need for careful attention to detail and proactive management. It would be prudent to seek clarification from Exit regarding what specific actions or omissions constitute a failure to comply with the agreement. Understanding the types of violations that could trigger this clause is crucial for mitigating the risk of termination without a chance to rectify the situation. This also emphasizes the need to maintain thorough records of compliance efforts and communications with Exit regarding any potential issues.