What specific rights of the Exit Subfranchisor are not affected by the termination of the agreement due to a Franchisee default?
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, the termination of the Franchise Agreement by the Subfranchisor due to a Franchisee default does not terminate any monetary obligations owed by the Franchisee to Exit, the Subfranchisor, or the Brokers' Council. This means that even if the agreement is terminated, the Franchisee is still responsible for paying any outstanding debts.
Furthermore, the termination does not act as an exclusive remedy, nor does it affect the rights of Exit or the Subfranchisor to receive or collect fees or other amounts payable by the Franchisee under the agreement. The Subfranchisor can still enforce the provisions of the agreement, sue for damages, seek injunctive relief, or pursue any other equitable remedy for breach of the agreement. The Subfranchisor also retains all other rights upon the occurrence of an Event of Default.
Finally, the Subfranchisor is not obligated to refund any amounts previously paid by the Franchisee under the terms of the agreement following termination or cancellation. This protects the Subfranchisor's financial interests and ensures they are not penalized for the Franchisee's default.