After termination of the Exit franchise agreement, what must the franchisee cease and refrain from using regarding the Exit system?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
tion of all distinguishing characteristics of the System, including but not limited to, trade names, trademarks, service marks, membership marks, certification marks, copyrights, designs, slogans, logos, names, advertising copy or other printed or physical materials now or hereafter displayed, used or becoming a part of the System.
(C) Franchisee shall immediately cease and refrain from using the System, or any parts thereof, and Franchisee shall immediately cease and refrain from holding itself out to the public in any way as a member of or as a former member of the System or as a Franchisee, Affiliate or operator of the System.
(D) Franchisee shall immediately distinguish its operations from that of EXIT, Subfranchisor, and of EXIT Affiliates so as to avoid every possibility of any confusion to the public.
(E) Franchisee, at its expense, shall make or cause to be made such changes in signs, telephone numbers, buildings or structures as EXIT or Subfranchisor may direct in order to distinguish Franchisee effectively from its former appearance and from other EXIT Affiliates. The changes shall include a complete change in the trade name from that under which Franchisee conducted its business while affiliated with the System. If Franchisee shall, upon request, fail or omit to make or cause to be made the changes within ten (10) days, then Subfranchisor shall have the right to enter upon the premises, without liability, and make, or cause to be made, the changes at the expense of Franchisee, which expenses shall be paid by Franchisee upon demand.
(F) Franchisee shall, at Subfranchisor's direction, file the appropriate forms to abandon and/or withdraw any assumed name certificate, to cease all activities with and claims to ownership of any trade or assumed name containing any Proprietary mark or to transfer the same to Subfranchisor, and/or to change the name of its corporation, partnership, or affiliate to eliminate any reference to the System.
(G) Franchisee shall immediately return to Subfranchisor all manuals, bulletins, instruction sheets, forms, marks, designs, signs, printed matter, and other material obtained by Franchisee under and pursuant to this Agreement, together with copies of the same that may have been made by Franchisee, or that are in its possession, custody or control.
(H) Franchisee shall immediately cause the local telephone company to change all of its telephone numbers and assign the numbers listed for the franchised real estate office to Subfranchisor. If at the expiration of this Agreement, Franchisee has complied with all of its financial obligations to EXIT and Subfranchisor and it is not otherwise in default, Franchisee shall not be obligated to comply with the provisions of this Subsection 17(H).
(I) Franchisee shall immediately execute all documents necessary to assign all of its EXIT related domain names, internet web sites, web pages, and e-mail addresses to Subfranchisor or its designee.
(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.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, after termination of the franchise agreement, a franchisee must immediately cease using the Exit system or any part of it. This includes refraining from presenting themselves to the public as a current or former member, franchisee, affiliate, or operator of the Exit system.
To avoid public confusion, the franchisee must immediately differentiate their operations from Exit, its subfranchisor, and Exit affiliates. This involves making changes to signs, telephone numbers, buildings, or structures as directed by Exit or the subfranchisor. These changes include a complete change in the trade name used during the franchise agreement. If the franchisee fails to make these changes within ten days of the request, the subfranchisor can enter the premises and make the changes at the franchisee's expense.
The franchisee must also file forms to abandon any assumed name certificates, cease activities related to any trade name containing Exit's proprietary marks, or transfer these names to the subfranchisor. Additionally, the franchisee must change the name of their corporation, partnership, or affiliate to remove any reference to the Exit system. All manuals, bulletins, instruction sheets, forms, marks, designs, signs, printed matter, and other materials obtained during the agreement, including copies, must be returned to the subfranchisor. The franchisee must also transfer all Exit related domain names, internet web sites, web pages, and e-mail addresses to Subfranchisor or its designee.
Furthermore, for three years after termination or non-renewal, the franchisee must keep the subfranchisor informed of their current business and residence address and telephone numbers, as well as the business address and phone number of their employer, if applicable. The franchisee must also refrain from using the term "EXIT" or any confusingly similar term in any subsequent business to avoid confusion about their affiliation with the Exit system, including terms with the prefix or suffix "EX" or "IT."