What is the purpose for which the Exit franchisee is granted a non-exclusive license to use the Proprietary Marks?
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.
(B) Franchisee understands and agrees that its license to use the Proprietary Marks is non-exclusive. EXIT in its sole discretion has the right to grant franchises or licenses to others and to license to others the right to use the Proprietary Marks in addition to those franchises and licenses already granted to other franchisees and subfranchisors. EXIT may develop and license other marks in conjunction with systems other than the EXIT System, on any terms and conditions EXIT deems advisable.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the subfranchisor grants the franchisee a non-exclusive license to use Exit's Proprietary Marks for the purpose of operating a franchise under the terms and conditions of the Franchise Agreement. This license is specifically for operating an Exit franchise and for no other purpose. The agreement emphasizes that ownership and title to the Proprietary Marks remain exclusively with Exit.
The franchisee is required to maintain the confidentiality of the Proprietary Marks, avoid infringing on Exit's rights, and only use them as expressly authorized. The franchisee must also use the appropriate SM, TM, or ® symbols with the Proprietary Marks. The license is valid only during the term of the Franchise Agreement.
Exit retains the right to grant additional franchises or licenses to others, allowing them to use the Proprietary Marks. Exit can also develop and license other marks for different systems. This non-exclusive arrangement means that the franchisee will not have exclusive use of Exit's brand assets in their territory, and Exit can authorize others to operate under the same marks.