For what purpose is the franchisee granted the license to use the Proprietary Marks for the Exit franchise?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
(A) Subfranchisor, having been granted the right to do so by EXIT, grants to Franchisee, and Franchisee accepts, a non-exclusive license to use the Proprietary Marks (as defined in Section 43), for the purpose of operating
a Franchise pursuant to the terms and conditions of this Agreement, and for no other purpose. Subfranchisor and Franchisee expressly agree that ownership, right and title to the Proprietary Marks, regardless of source, are automatically vested in and shall remain solely and exclusively the property of EXIT, and are provided to Franchisee by Subfranchisor in confidence. Franchisee agrees to keep all of the Proprietary Marks in confidence, not infringe on EXIT's rights in the Proprietary Marks, not use them in any manner unless expressly authorized by EXIT, and not disclose them without the prior written consent of Subfranchisor, except as provided in this Agreement. This license is contemporaneous and coterminous with this Agreement and is granted solely in the context of this Agreement. Franchisee shall only use the Proprietary Marks with the SM, TM or ® symbols and designations, as applicable.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the franchisee is granted a non-exclusive license to use Exit's Proprietary Marks for the specific purpose of operating a franchise under the terms and conditions outlined in the Franchise Agreement. This license is strictly limited to this purpose, and no other use is authorized. The agreement emphasizes that ownership and title to the Proprietary Marks remain exclusively with Exit.
This means that as a franchisee, you can only use Exit's trademarks, service marks, logos, and other identifying marks to run your real estate brokerage or service office as defined in the franchise agreement. Any other use of these marks, without express authorization from Exit, is prohibited. This includes using the marks in a way that is not directly related to the operation of the franchise or in a manner that could infringe on Exit's rights.
The Franchise Agreement specifies that the license to use the Proprietary Marks is non-exclusive, meaning Exit retains the right to grant similar licenses to others, including other franchisees and subfranchisors. Exit can also develop and license other marks for different systems. Franchisees must use the appropriate SM, TM, or ® symbols with the Proprietary Marks as applicable.
This condition ensures that Exit maintains control over its brand and how it is represented in the marketplace. Franchisees must adhere to these guidelines to protect the brand's reputation and goodwill. Any unauthorized use of the Proprietary Marks could lead to a breach of the Franchise Agreement and potential legal consequences.