What rights does Exit retain regarding granting additional franchises or licenses to use the Proprietary Marks?

According to Exit's 2025 Franchise Disclosure Document, Exit retains significant rights regarding the granting of additional franchises and licenses for the use of its Proprietary Marks. Specifically, Exit has the sole discretion to grant franchises or licenses to others, allowing them to use the Proprietary Marks. This includes the right to grant franchises and licenses in addition to those already granted to existing franchisees and subfranchisors. This means that a new Exit franchisee's territory is not necessarily exclusive, except as defined in their specific franchise agreement.

Furthermore, Exit reserves the right to develop and license other marks in conjunction with systems other than the Exit System. These additional marks can be licensed under any terms and conditions that Exit deems advisable. This clause provides Exit with the flexibility to expand its brand portfolio and explore new business avenues without being restricted by existing franchise agreements.

In practical terms, this means that while an Exit franchisee may be granted a specific territory, Exit retains the power to introduce competing franchises or license its marks to other businesses, even those operating outside the Exit System. A prospective franchisee should carefully evaluate the market potential of their territory, understanding that Exit's strategic decisions could impact their business. It is important to note that the franchise agreement outlines the terms of exclusivity, and any breach of the agreement by the franchisee could result in the territory becoming non-exclusive, allowing Exit to operate or sell franchises within that territory.