Does Exit specify the form or content of the written agreement that the manager must sign?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
As a Franchisee, you, or if you are an entity, an officer, member, director, partner or other person named as the real estate broker of record, must devote full time and best efforts to the Franchise business. If the Franchisee is operating as a corporation, partnership or limited liability company, you and all other equity holders in the company must execute a Personal Guaranty of the Franchise Agreement. In addition, in community or marital property states, your spouse may be required to sign the Personal Guaranty. Your business must be directly supervised "on premises" by a manager who has successfully completed EXIT's training programs. The on-premises manager cannot have an interest or business relationship with any of EXIT's competitors. The manager need not have an ownership interest in your corporate or partnership Franchise. The manager must sign a written agreement to maintain confidentiality of the proprietary information described in ITEM 14 and to conform with the covenants not to compete described in ITEM 17 of this Disclosure Document.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 27)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, if a franchisee operates as a corporation, partnership, or limited liability company, the business must be directly supervised on the premises by a manager who has successfully completed Exit's training programs.
The Exit FDD states that the on-premises manager cannot have an interest or business relationship with any of Exit's competitors. The manager does not need to have an ownership interest in the franchisee's corporation or partnership.
Critically, the Exit FDD specifies that the manager must sign a written agreement to maintain confidentiality of the proprietary information described in Item 14 and to conform with the covenants not to compete described in Item 17 of the FDD. However, the FDD does not provide further details regarding the specific form or content of this written agreement, beyond its purpose relating to confidentiality and non-competition.