What specific entities, besides the Exit Subfranchisor, are entitled to receive monetary obligations from the Franchisee even after termination?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (B) Termination of this Agreement by Subfranchisor shall not terminate any monetary obligations owed by Franchisee to EXIT, Subfranchisor or the Brokers' Council.
Termination of this Agreement by Subfranchisor shall not be an exclusive remedy and shall not in any way affect the rights of EXIT or Subfranchisor to receive, or collect fees or other amounts payable by Franchisee under this Agreement, to enforce the provisions of this Agreement against Franchisee, to sue for damages, seek and obtain ex parte injunctive relief, to pursue any other equitable remedy for breach of this Agreement by Franchisee or otherwise constitute a waiver of any of Subfranchisor's other rights upon the occurrence of an Event of Default.
Subfranchisor shall not be obligated following any such termination or cancellation, to refund any amount previously paid by Franchisee under the terms of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, termination of the Franchise Agreement by the Subfranchisor does not eliminate the franchisee's monetary obligations to Exit, the Subfranchisor, or the Brokers' Council. This means that even after the franchise agreement ends, the franchisee may still be required to pay fees or other amounts owed to these entities. This obligation survives the termination of the agreement.
This provision protects Exit and related entities by ensuring they can still collect outstanding debts or fees even if the franchise relationship has ended. It also allows Exit and the Subfranchisor to enforce the provisions of the agreement and pursue legal remedies for any breaches by the franchisee, including seeking damages or injunctive relief. The franchisee remains responsible for fulfilling financial obligations to Exit, the Subfranchisor, and the Brokers' Council, regardless of the termination.
For a prospective Exit franchisee, this clause highlights the importance of understanding and meeting all financial obligations throughout the term of the agreement. Failure to do so could result in continued financial liabilities even after the franchise is terminated. It is also important to note that the Subfranchisor is not obligated to refund any amounts previously paid by the franchisee upon termination or cancellation of the agreement.