Regarding the transfer of an Exit franchise, who has the right to demand immediate payment of the unpaid balance: Exit, the Subfranchisor, or the Brokers' Council?

According to Exit's 2025 Franchise Disclosure Document, in the event of a transfer of the franchise, Exit, the Subfranchisor, or the Brokers' Council each have the right to demand immediate payment of the entire unpaid principal balance of all amounts due to them, along with any accrued and unpaid interest. This payment becomes due without any further notice or demand.

This means that if a franchisee decides to transfer their Exit franchise to someone else, they must ensure that all outstanding financial obligations to Exit, the Subfranchisor, and the Brokers' Council are settled immediately. This includes not only the principal amounts but also any interest that has accumulated over time. The franchisee cannot assume that they will receive a reminder or warning before this payment is required; it is their responsibility to be prepared to pay in full at the time of transfer.

This provision protects Exit, the Subfranchisor, and the Brokers' Council by ensuring they receive all outstanding payments when a franchise changes hands. It also places a significant financial burden on the franchisee looking to transfer their franchise, as they must have the resources available to clear all debts immediately. Prospective franchisees should be aware of this requirement and factor it into their financial planning, especially if they anticipate selling or transferring their franchise in the future.