What is the positioning and capitalization requirement for the word 'EXIT' in the Exit Trade Style name?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (A) Franchisee shall conduct its business under the trade name that includes the word "EXIT" and either the words "Realty" or "Real Estate" (hereinafter "Trade Style name"). Franchisee shall obtain Subfranchisor's written approval of its Trade Style name, prior to making any commitments or records of such name. The word EXIT must be positioned at the beginning of the name and EXIT must always be in CAPS. In no event shall such name contain any arbitrary, whimsical, invented or suggestive words or acronyms. Franchisee will file for a certificate of fictitious or assumed name in the manner required by applicable state law so as to notify the public that Franchisee is operating its Franchise as an independent business pursuant to this Agreement. Franchisee shall have no right to use or register the Trade Style name apart from the right granted under this Agreement, and all such rights shall cease upon the termination or expiration of this Agreement.
- (B) The Trade Style name is the name under which the Franchisee shall conduct business, and shall be different than Franchisee's legal entity name. Franchisee's legal name shall not include the name "EXIT."
- (C) Franchisee may not change the Trade Style name or the legal name without prior written consent of Subfranchisor, which shall not be unreasonably withheld.
- (D) If Franchisee decides to advertise, promote, or otherwise conduct business by means of the Internet or World Wide Web, Franchisee shall also utilize a domain name which includes the word "EXIT" and the EXIT Logo. Any such domain name must be approved by Subfranchisor in writing prior to Franchisee's use of it. All marketing shall be in accordance with the standards and guidelines provided in the Training Manuals.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a franchisee's trade name must include the word "EXIT" along with either "Realty" or "Real Estate." The word "EXIT" must be positioned at the beginning of the trade name. Furthermore, the trade name must always have "EXIT" in all capital letters. The franchisee must get written approval of their trade name from the subfranchisor before making any commitments or records of the name. The trade name cannot contain any arbitrary, whimsical, invented, or suggestive words or acronyms.
This requirement ensures brand consistency across all Exit franchises. By mandating the capitalization and positioning of "EXIT" in the trade name, Exit maintains a uniform brand identity. This consistency can help customers easily recognize and associate the business with the Exit brand.
Additionally, the franchisee's legal name cannot include the word "EXIT," distinguishing it from the trade name used for business operations. The franchisee must also utilize a domain name that includes the word "EXIT" and the Exit logo if they decide to advertise or promote their business on the internet. This domain name also requires prior written approval from the subfranchisor. These rules help Exit maintain control over its brand identity and online presence, ensuring that franchisees represent the brand appropriately.
These stipulations are typical in franchising, where maintaining brand uniformity is crucial for recognition and customer trust. Prospective franchisees should carefully consider these requirements and ensure they can comply with Exit's branding guidelines.