After the termination of the Exit agreement, what obligations of the franchisee to Exit, Subfranchisor, and the Broker's Council survive?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
If this Agreement is terminated or not renewed:
(A) All provisions in this Agreement concerning obligations of Franchisee to EXIT, Subfranchisor and the Broker's Council shall be deemed to survive the termination of this Agreement.
(J) Franchisee shall, for three (3) years following any termination or non-renewal of this Agreement, keep Subfranchisor advised of its current business and residence address and telephone numbers, as well as the business address and phone number of its employer, if any.
During the ten (10)-day period prior to termination or non-renewal of this Agreement, immediately upon the termination or non-renewal becoming effective and continuing thereafter, Franchisee shall allow other EXIT affiliates to solicit Franchisee's Sales Representatives for transfer to other operating EXIT offices.
Franchisee shall assist in effectuating such transfers and shall permit and facilitate the assignment of the Sales Representatives' listings and pending transactions to the EXIT Affiliate as the Sales Representative's new broker.
(L) Franchisee shall refrain from adopting or using in connection with, or in the name of, any subsequent business the term EXIT or any term confusingly similar to such term or any other term which may have the effect of creating confusion or question regarding his/her affiliation with the System, including without limitation, any name or term with the prefix and/or suffix "EX" or "IT."
(M) Franchisee shall close all transactions under contract at time of termination through EXIT's proprietary system "MEMO" at the time the transaction closes and pay all company development fees, transaction fees and regional development fees that are due.
(B) Termination of this Agreement by Subfranchisor shall not terminate any monetary obligations owed by Franchisee to EXIT, Subfranchisor or the Brokers' Council.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, all provisions in the agreement concerning the franchisee's obligations to Exit, the Subfranchisor, and the Broker's Council survive the termination of the agreement. This means that even after the franchise agreement ends, certain duties and responsibilities of the franchisee continue.
Specifically, the franchisee must keep the Subfranchisor advised of their current business and residence address and telephone numbers, as well as the business address and phone number of their employer, if any, for three years following termination or non-renewal. The franchisee must also allow other Exit affiliates to solicit the franchisee's Sales Representatives for transfer to other operating Exit offices, both during the ten-day period before termination and after termination. The franchisee is obligated to assist in these transfers and facilitate the assignment of the Sales Representatives' listings and pending transactions to the new Exit affiliate.
Furthermore, the franchisee must refrain from using the term "EXIT" or any confusingly similar term in any subsequent business, to avoid creating confusion about their affiliation with the Exit system. The franchisee is also required to close all transactions under contract at the time of termination through Exit's proprietary system "MEMO" and pay all company development fees, transaction fees, and regional development fees that are due. Additionally, the termination of the agreement does not end any monetary obligations owed by the franchisee to Exit, the Subfranchisor, or the Brokers’ Council.