Does Exit reserve the right to change or discontinue any of the trademarks?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
EXIT reserves the right to change or modify or discontinue any of the
trademarks. The trademarks, registered on the Principal Register of the United States Patent and Trademark Office, are as follows:
EXIT shall have the sole authority to add to, delete or modify the trademarks from time to time. You must modify or discontinue a trademark, at your own expense, if EXIT Realty Upper Midwest notifies you to discontinue or modify your use of a trademark. You must comply within a reasonable time, if we notify you to discontinue or modify your use of any trademark. EXIT Realty Upper Midwest will have no liability or obligation as to your modification or discontinuance of any mark.
You may not contest EXIT's rights to its trademarks, trade secrets, or proprietary and distinctive system.
Source: Item 13 — TRADEMARKS (FDD pages 25–27)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit does reserve the right to change, modify, or discontinue any of its trademarks. This means that while a franchisee is granted the right to operate a real estate sales office under the "EXIT" or "EXIT Realty" trademarks, this right is subject to change at Exit's discretion.
This is a fairly standard clause in franchise agreements, as franchisors need the flexibility to update their branding and trademarks to stay current and competitive. However, for a franchisee, this means there is a risk that they may be required to modify or discontinue using certain trademarks during the term of their franchise agreement.
The FDD states that if Exit Realty Upper Midwest notifies a franchisee to discontinue or modify the use of a trademark, the franchisee must comply within a reasonable time and at their own expense. Exit Realty Upper Midwest will not have any liability or obligation as to the franchisee's modification or discontinuance of any mark. This could potentially involve costs for new signage, marketing materials, and other branding updates to reflect the changes, which the franchisee will be responsible for covering. Franchisees cannot contest Exit's rights to its trademarks, trade secrets, or proprietary and distinctive system.