Does Exit require franchisees to obtain written approval of their Trade Style name?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
mplied with the provisions of this Agreement, curing all defaults and non-compliance under this Agreement and any other franchise agreements or other agreements it may have with Subfranchisor and/or EXIT.
9.3. Franchisee's Trade Name; Legal Name
- (A) Franchisee shall conduct its business under the trade name that includes the word "EXIT" and either the words "Realty" or "Real Estate" (hereinafter "Trade Style name"). Franchisee shall obtain Subfranchisor's written approval of its Trade Style name, prior to making any commitments or records of such name. The word EXIT must be positioned at the beginning of the name and EXIT must always be in CAPS. In no event shall such name contain any arbitrary, whimsical, invented or suggestive words or acronyms. Franchisee will file for a certificate of fictitious or assumed name in the manner required by applicable state law so as to notify the public that Franchisee is operating its Franchise as an independent business pursuant to this Agreement. Franchisee shall have no right to use or register the Trade Style name apart from the right granted under this Agreement, and all such rights shall cease upon the termination or expiration of this Agreement.
- (B) The Trade Style name is the name under which the Franchisee shall conduct business, and shall be different than Franchisee's legal entity name. Franchisee's legal name shall not include the name "EXIT."
- (C) Franchisee may not change the Trade Style name or the legal name without prior written consent of Subfranchisor, which shall not be unreasonably withheld.
- (D) If Franchisee decides to advertise, promote, or otherwise conduct business by means of the Internet or World Wide Web, Franchisee shall also utilize a domain name which includes the word "EXIT" and the EXIT Logo. Any such domain name must be approved by Subfranchisor in writing prior to Franchisee's use of it. All marketing shall be in accordance with the standards and guidelines provided in the Training Manuals.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are required to obtain written approval of their Trade Style name from the Subfranchisor. This approval must be secured before making any commitments or records related to the name. The Trade Style name must include the word "EXIT" along with either "Realty" or "Real Estate," with "EXIT" positioned at the beginning and always in capital letters. The name cannot contain any arbitrary, whimsical, invented, or suggestive words or acronyms.
This requirement ensures that all Exit franchises maintain a consistent brand identity and adhere to the company's standards for naming conventions. It also protects Exit's trademark by preventing franchisees from using names that could dilute or infringe upon the brand. Franchisees must also file for a certificate of fictitious or assumed name as required by state law to notify the public that they are operating as an independent business under the franchise agreement.
Furthermore, franchisees cannot change their Trade Style name or legal name without prior written consent from the Subfranchisor, although such consent will not be unreasonably withheld. If a franchisee intends to use the internet or World Wide Web for advertising or business, the domain name must also include the word "EXIT" and the EXIT logo, and it requires written approval from the Subfranchisor before use. These measures help maintain brand consistency across all platforms and prevent unauthorized use of the Exit name and logo.
Finally, the Trade Style name, domain name, application name, or social media profile name cannot include the words "National, International, Canada, U.S., or North America," or imply that the franchisee has exclusive rights beyond their Protected Territory. This restriction ensures that franchisees do not misrepresent the scope of their operational rights and maintain accurate branding within their designated area.