After termination or non-renewal, what must an Exit franchisee immediately cease doing regarding public representation?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
(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.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, after termination or non-renewal of the franchise agreement, a franchisee must immediately cease holding themselves out to the public as a member, former member, franchisee, affiliate, or operator of the Exit system. This means the franchisee can no longer represent any affiliation with the Exit brand in any public manner.
To further distinguish themselves from Exit, the franchisee must also take immediate steps to ensure their operations are clearly differentiated from Exit, its subfranchisor, and its affiliates. This is to prevent any potential confusion among the public regarding their past association with the Exit brand.
In practical terms, this means an Exit franchisee needs to be prepared to completely rebrand their business upon termination or non-renewal. This includes not only ceasing the use of Exit's trademarks and system, but also actively communicating their new, independent status to customers and the general public to avoid any misperceptions.