What specific financial obligations to the Exit Subfranchisor must be met for the franchisee to be exempt from changing telephone numbers?

According to Exit's 2025 Franchise Disclosure Document, a franchisee is typically required to change their telephone numbers and assign them to the subfranchisor upon the agreement's expiration. However, this obligation is waived if the franchisee has met all financial obligations to both Exit and the subfranchisor and is not in default of the agreement. This provision ensures that franchisees fulfill their financial responsibilities before being relieved of certain post-termination requirements.

For a prospective Exit franchisee, this means that maintaining good financial standing throughout the franchise term is crucial. Failure to meet financial obligations could result in the franchisee being required to change their phone numbers at the end of the agreement, which could disrupt their business if they continue in real estate under a different brand. This condition incentivizes franchisees to prioritize timely payments of all fees and dues to Exit and the subfranchisor.

It is important for potential franchisees to understand all the financial obligations outlined in the Franchise Agreement, including franchise fees, royalties, and any other fees that may be applicable. Keeping detailed records of all payments made and ensuring compliance with the agreement's financial terms will help franchisees avoid being subject to the telephone number change requirement upon termination or expiration of the franchise agreement. This clause highlights the importance of a franchisee's financial performance and adherence to the franchise agreement's terms.