On what page of the Exit Franchise Agreement can I find information about the term and renewal of the franchise?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
4. TERM/TERMINATION
- a) Initial Term and Renewal. The term of this Agreement shall be for a period of 1 year from the date first written above. The Agreement will automatically be renewed for further periods of 1 year, unless terminated in writing by either party at least 60 days before the end of the term in effect. Upon renewal, the Renewal Form attached as Schedule 3 to this Agreement, or the most current Renewal Form, if it has been amended since the date of this Agreement, shall be completed by both parties
- b) Termination Without Cause. Either party may terminate this Agreement without cause, on giving not less than 30 days written notice to the other party.
- c) Termination for Cause. If Sales Representative fails to comply with the terms of this Agreement or any other agreement with an EXIT franchisee, this will be considered cause for EXIT [Trade Name] to terminate this Agreement immediately.
5
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, information regarding the term and renewal of the franchise agreement can be found on page 5. Specifically, section 4 covers the initial term and renewal conditions for the Sales Representative Agreement. The initial term is one year from the agreement date, with automatic one-year renewals unless either party provides written termination notice at least 60 days before the current term expires. Upon renewal, both parties must complete the Renewal Form attached as Schedule 3, or the most current version if it has been amended.
This section outlines the duration of the agreement and the process for extending it, which is crucial for franchisees to understand their long-term commitment and renewal options. The automatic renewal clause provides continuity but also requires proactive action if either party wishes to terminate the agreement. The requirement to complete a renewal form ensures that both parties are aware of any changes to the agreement terms.
It is important to note that this information pertains to the Sales Representative Agreement, not the Franchise Agreement itself. The document also mentions conditions for franchisees to renew their agreements for subsequent five or ten year terms, provided they meet certain conditions. These conditions include compliance with the agreement's terms, providing timely written notice, executing the current standard Franchise Agreement, satisfying all monetary obligations, paying a renewal fee, and attending required training programs.
Prospective Exit franchisees should carefully review these sections to understand the specific requirements and timelines for renewal, as well as the fees associated with extending their franchise agreement. Understanding these details is essential for planning the long-term operation and financial aspects of the franchise.