Can a Sales Representative assign their rights or obligations under the Exit agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- g) Assignment.
This Agreement is personal to Sales Representative and no rights or obligations of Sales Representative under this Agreement shall be assignable by Sales Representative.
EXIT [Trade Name] may assign its rights and obligations under this Agreement to any successor to the business of EXIT [Trade Name] or any part of its business, and EXIT [Trade Name] shall be relieved of all obligations under this Agreement arising subsequent to the date of the assignment.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a Sales Representative is not allowed to assign their rights or obligations under the Sales Representative Agreement. The agreement is personal to the Sales Representative, meaning they cannot transfer their responsibilities or entitlements to another party.
This restriction ensures that Exit maintains control over who represents their brand and how the services are delivered. It prevents a Sales Representative from simply handing off their agreement to someone else without Exit's approval, which could potentially harm the brand's reputation or lead to inconsistent service quality.
However, Exit retains the right to assign its own rights and obligations under the agreement. Exit can transfer the agreement to any successor of its business or any part of its business. Upon such assignment, Exit is relieved of all obligations under the agreement that arise after the assignment date. This provision allows Exit to ensure business continuity in case of a sale, merger, or other transfer of ownership.