During what period must an Exit franchisee allow other Exit Affiliates to solicit its Sales Representatives?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (K) Franchisee shall allow other EXIT Affiliates to solicit Franchisee's Sales Representative for transfer to other operating EXIT offices.
During the ten (10)-day period prior to termination or non-renewal of this Agreement, immediately upon the termination or non-renewal becoming effective and continuing thereafter, Franchisee shall allow other EXIT affiliates to solicit Franchisee's Sales Representatives for transfer to other operating EXIT offices.
Franchisee shall assist in effectuating such transfers and shall permit and facilitate the assignment of the Sales Representatives' listings and pending transactions to the EXIT Affiliate as the Sales Representative's new broker.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, an Exit franchisee must allow other Exit affiliates to solicit its Sales Representatives during a specific period related to the termination or non-renewal of the franchise agreement.
Specifically, this obligation begins ten days before the termination or non-renewal of the agreement becomes effective. It continues immediately upon the termination or non-renewal taking effect and extends from that point forward. During this period, the franchisee is not only required to allow solicitation but also to assist in the transfer of Sales Representatives to other Exit offices.
This means the Exit franchisee must facilitate the assignment of the Sales Representatives' listings and pending transactions to the new Exit Affiliate acting as the Sales Representative's new broker. This requirement ensures a smooth transition of sales staff and business operations within the Exit franchise system, but it could pose a challenge for a franchisee who is losing their franchise and potentially their sales team.