What provisions concerning the franchisee's obligations to Exit survive the termination of the Exit Franchise Agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
chisor and for EXIT, as liquidated damages and not as a penalty, an amount equal to the average monthly Continuing Fees paid to Subfranchisor and EXIT in accordance with the EXIT Formula for the twelve (12) month period immediately preceding the termination multiplied by the number of months remaining until the Expiration Date.
17. POST TERMINATION - RIGHTS AND OBLIGATIONS
17.1. Obligations upon Termination or Non-renewal
If this Agreement is terminated or not renewed:
(A) All provisions in this Agreement concerning obligations of Franchisee to EXIT, Subfranchisor and the Broker's Council shall be deemed to survive the termination of this Agreement.
(B) All rights of Franchisee under this Agreement shall terminate and Franchisee shall immediately discontinue all use, imitation or duplication of all distinguishing characteristics of the System, including but not limited to, trade names, trademarks, service marks, membership marks, certification marks, copyrights, designs, slogans, logos, names, advertising copy or other printed or physical materials now or hereafter displayed, used or becoming a part of the System.
(C) Franchisee shall immediately cease and refrain from using the System, or any parts thereof, and Franchisee shall immediately cease and refrain from holding itself out to the public in any way as a member of or as a former member of the System or as a Franchisee, Affiliate or operator of the System.
(D) Franchisee shall immediately distinguish its operations from that of EXIT, Subfranchisor, and of EXIT Affiliates so as to avoid every possibility of any confusion to the public.
(E) Franchisee, at its expense, shall make or cause to be made such changes in signs, telephone numbers, buildings or structures as EXIT or Subfranchisor may direct in order to distinguish Franchisee effectively from its former appearance and from other EXIT Affiliates. The changes shall include a complete change in the trade name from that under which Franchisee conducted its business while affiliated with the System. If Franchisee shall, upon request, fail or omit to make or cause to be made the changes within ten (10) days, then Subfranchisor shall have the right to enter upon the premises, without liability, and make, or cause to be made, the changes at the expense of Franchisee, which expenses shall be paid by Franchisee upon demand.
(F) Franchisee shall, at Subfranchisor's direction, file the appropriate forms to abandon and/or withdraw any assumed name certificate, to cease all activities with and claims to ownership of any trade or assumed name containing any Proprietary mark or to transfer the same to Subfranchisor, and/or to change the name of its corporation, partnership, or affiliate to eliminate any reference to the System.
(G) Franchisee shall immediately return to Subfranchisor all manuals, bulletins, instruction sheets, forms, marks, designs, signs, printed matter, and other material obtained by Franchisee under and pursuant to this Agreement, together with copies of the same that may have been made by Franchisee, or that are in its possession, custody or control.
(H) Franchisee shall immediately cause the local telephone company to change all of its telephone numbers and assign the numbers listed for the franchised real estate office to Subfranchisor. If at the expiration of this Agreement, Franchisee has complied with all of its financial obligations to EXIT and Subfranchisor and it is not otherwise in default, Franchisee shall not be obligated to comply with the provisions of this Subsection 17(H).
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, several obligations of the franchisee to Exit, the Subfranchisor, and the Broker's Council survive the termination of the Franchise Agreement. These include discontinuing all use of Exit's system characteristics, such as trade names and trademarks. The franchisee must also change all telephone numbers and assign the numbers to the Subfranchisor, as well as assign all Exit-related domain names, websites, webpages, and email addresses to the Subfranchisor.
For three years following termination or non-renewal, the franchisee must keep the Subfranchisor informed of their current business and residence address and telephone numbers, as well as the business address and phone number of their employer, if any. The franchisee must also allow other Exit affiliates to solicit the franchisee's sales representatives for transfer to other operating Exit offices, and assist in effectuating such transfers, including the assignment of listings and pending transactions. The franchisee is prohibited from using the term "EXIT" or any confusingly similar term in any subsequent business.
Additionally, the franchisee must close all transactions under contract at the time of termination through Exit's proprietary system and pay all company development fees, transaction fees, and regional development fees that are due. If termination is for non-renewal and all other obligations have been met, Exit will continue to pay out any applicable sponsoring bonuses on the final transactions to the franchisee and its associates who were with Exit at the time of termination. If termination is due to default or other agreed-upon terms, sponsoring bonuses to associates who are no longer with Exit will be paid to the Subfranchisor or, if the Subfranchisor does not exist, to Exit.