Who has the sole right to manage disputes with third parties concerning the Exit trademarks?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify EXIT Realty Upper Midwest immediately when you learn about an infringement of or challenge to your use of EXIT's trademarks. EXIT Realty Upper Midwest will take the action we think is appropriate. EXIT has the sole right to manage and resolve disputes with third parties concerning the trademarks. EXIT will defend you against any claim opposing your use of the trademarks. You may tender the defense of any trademark action to EXIT and EXIT Realty Upper Midwest, and EXIT will defend you in the action, at our cost, but only if you send the lawsuit to EXIT within seven (7) days after you receive it. You may hire your own attorney to defend you in this action, but then you must pay all your own legal expenses. 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 has the sole right to manage and resolve disputes with third parties concerning the trademarks. This means that if any issues arise with other companies or individuals regarding the use or infringement of Exit's trademarks, Exit alone will handle the legal proceedings and resolutions.
For a prospective Exit franchisee, this is a significant benefit. It means they do not have to bear the burden of managing complex legal disputes related to the Exit trademarks. If a franchisee learns of any infringement or challenge to the use of Exit's trademarks, they must notify Exit Realty Upper Midwest immediately, and Exit will then take action as it deems appropriate.
Furthermore, Exit will defend the franchisee against any claim opposing their use of the trademarks, provided the franchisee sends the lawsuit to Exit within seven days of receiving it. The franchisee has the option to hire their own attorney, but in that case, they will be responsible for all their legal expenses. This arrangement protects the franchisee from potentially high legal costs and ensures that trademark-related disputes are handled consistently and professionally by Exit. Franchisees are not allowed to contest Exit's rights to its trademarks, trade secrets, or proprietary and distinctive system.