Are the post-term covenants in the Exit franchise agreement considered independent of each other?

According to Exit's 2025 Franchise Disclosure Document, the post-term covenants within the franchise agreement are expressly agreed upon by both parties to be independent of each other. This means that each individual covenant stands alone and is considered reasonable and necessary to protect the Subfranchisor and other Exit franchises. This independence applies if the agreement expires or is terminated for any reason.

For a prospective Exit franchisee, this has significant implications. If any one of the post-term covenants is deemed unenforceable for any reason, the remaining covenants will still be in full effect. This provides Exit with a stronger position to enforce non-compete and confidentiality obligations, even if one specific clause is successfully challenged.

The FDD emphasizes that these limitations are reasonable and necessary to protect the Subfranchisor and other Exit franchises upon expiration or termination of the agreement. This underscores the importance Exit places on safeguarding its business interests and the interests of its franchise network. Franchisees should carefully review all post-term covenants with legal counsel to fully understand their scope and potential impact.