What specific changes might Exit or the Subfranchisor direct the franchisee to make to distinguish themselves after termination?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
lding itself out to the public in any way as a member of or as a former member of the System or as a Franchisee, Affiliate or operator of the System.
- (D) Franchisee shall immediately distinguish its operations from that of EXIT, Subfranchisor, and of EXIT Affiliates so as to avoid every possibility of any confusion to the public.
- (E) Franchisee, at its expense, shall make or cause to be made such changes in signs, telephone numbers, buildings or structures as EXIT or Subfranchisor may direct in order to distinguish Franchisee effectively from its former appearance and from other EXIT Affiliates. The changes shall include a complete change in the trade name from that under which Franchisee conducted its business while affiliated with the System. If Franchisee shall, upon request, fail or omit to make or cause to be made the changes within ten (10) days, then Subfranchisor shall have the right to enter upon the premises, without liability, and make, or cause to be made, the changes at the expense of Franchisee, which expenses shall be paid by Franchisee upon demand.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, after termination, Exit or the Subfranchisor can direct a franchisee to make specific changes to distinguish their operations from Exit. These changes are aimed at avoiding public confusion and ensuring the franchisee no longer appears affiliated with the Exit system.
Specifically, Exit or the Subfranchisor may direct changes to signs, telephone numbers, and buildings or structures to differentiate the franchisee from their former appearance and from other Exit affiliates. This includes a complete change in the trade name used during the franchise agreement. If the franchisee fails to make these changes within ten days of the request, the Subfranchisor has the right to enter the premises and make the changes at the franchisee's expense.
Additionally, the franchisee must file appropriate forms to abandon any assumed name certificates, cease using any trade or assumed names containing Exit's proprietary marks, and change the name of their corporation, partnership, or affiliate to remove any reference to the Exit system. The franchisee is also required to change all telephone numbers and assign the numbers listed for the franchised real estate office to the Subfranchisor. These post-termination obligations are designed to protect Exit's brand and prevent any potential confusion in the marketplace.