What restrictions does Exit place on the words that can be used in the Trade Style name?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
lied 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.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees face specific restrictions on the words they can use in their Trade Style name. The Trade Style name must include the word "EXIT" and either "Realty" or "Real Estate." The word "EXIT" must be positioned at the beginning of the name and must always be in capital letters.
Exit prohibits the use of any arbitrary, whimsical, invented, or suggestive words or acronyms in the Trade Style name. Additionally, 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." Franchisees also cannot include anything that indicates they have exclusive rights beyond their protected territory.
These restrictions ensure uniformity and prevent franchisees from misrepresenting the scope of their business or creating confusion about the Exit brand. Franchisees must obtain written approval from the subfranchisor for their Trade Style name before making any commitments. This approval process allows Exit to maintain control over its brand identity and ensure compliance with the outlined restrictions.
Prospective franchisees should carefully consider these limitations when planning their business name and online presence to avoid potential conflicts or the need for rebranding later on. Adhering to these guidelines is essential for maintaining a consistent brand image and operating within the terms of the franchise agreement.