What is a required action for an Exit franchisee to maintain the grant of the franchise?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Subfranchisor grants to Franchisee, and Franchisee accepts, the right to use the federally registered service mark "EXIT" and such other Proprietary Marks (as defined in Section 43 of this Agreement) as Subfranchisor may designate from time to time for the purpose of operating a real estate brokerage/real estate service office within the specific geographic area (the "Protected Territory") outlined in the Description of Protected Territory (Schedule 3 of this Agreement) during the term of this Agreement, upon the terms and conditions of this Agreement and in accordance with guidelines established by Subfranchisor and EXIT (the "Franchise"). This grant is conditioned upon (i) Franchisee obtaining and maintaining a valid real estate broker's license in the state containing the Protected Territory to enable Franchisee to perform the full range of real estate services to be provided under the System, (ii) Franchisee not defaulting under this Agreement, and (iii) this Agreement not being terminated, canceled or abandoned.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the grant of the franchise is conditional upon several factors. Specifically, the franchisee must obtain and maintain a valid real estate broker's license in the state containing the Protected Territory. This license is necessary to perform the full range of real estate services under the Exit system.
Additionally, the franchisee must not be in default under the Franchise Agreement. Defaulting on the agreement can jeopardize the franchisee's rights and the exclusivity of their territory. The agreement must also not be terminated, canceled, or abandoned. Any of these actions would result in the loss of the franchise grant.
Maintaining these conditions is crucial for an Exit franchisee to continue operating under the Exit brand and within their designated territory. Failure to meet these requirements could lead to the termination of the franchise agreement and the loss of the right to operate as an Exit franchisee.