Are there any agreements that limit Exit's right to use or license others to use its trademarks?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
There is no currently effective material determination of the United States Patent and Trademark Office or the Trademark Trial and Appeal board, or the trademark administrator of any state or court, any pending infringement, opposition, or cancellation proceeding, and no pending material litigation involving EXIT's principal trademarks. EXIT has filed all required affidavits for maintenance of the trademark registrations. There are no agreements that limit EXIT's right to use or license others to use EXIT's trademarks. If EXIT Realty Upper Midwest's subfranchise rights are terminated, your right to use EXIT's trademarks shall continue.
You must use EXIT's trademarks only in the manner set forth in the Franchise Agreement and Training Manual, and as specified periodically by EXIT. You may not use any of the trademarks as part of a corporate name.
You must notify EXIT Realty Upper Midwest immediately when you learn about an infringement of or challenge to your use of EXIT's trademarks. EXIT Realty Upper Midwest will take the action we think is appropriate. EXIT has the sole right to manage and resolve disputes with third parties concerning the trademarks. EXIT will defend you against any claim opposing your use of the trademarks. You may tender the defense of any trademark action to EXIT and EXIT Realty Upper Midwest, and EXIT will defend you in the action, at our cost, but only if you send the lawsuit to EXIT within seven (7) days after you receive it. You may hire your own attorney to defend you in this action, but then you must pay all your own legal expenses. You may not contest EXIT's rights to its trademarks, trade secrets, or proprietary and distinctive system.
EXIT shall have the sole authority to add to, delete or modify the trademarks from time to time. You must modify or discontinue a trademark, at your own expense, if EXIT Realty Upper Midwest notifies you to discontinue or modify your use of a trademark. You must comply within a reasonable time, if we notify you to discontinue or modify your use of any trademark. EXIT Realty Upper Midwest will have no liability or obligation as to your modification or discontinuance of any mark.
EXIT Realty Upper Midwest knows of no infringing or prior uses that could materially affect your use of EXIT's trademarks.
Source: Item 13 — TRADEMARKS (FDD pages 25–27)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, there are currently no agreements that would limit Exit's right to use or license others to use its trademarks. The FDD also states that if Exit Realty Upper Midwest's subfranchise rights are terminated, a franchisee's right to use Exit's trademarks will continue. This suggests that Exit maintains control over its trademarks and their usage, even in the event of changes in its subfranchise relationships.
As an Exit franchisee, you are required to use Exit's trademarks only in the manner specified in the Franchise Agreement and Training Manual, and as periodically instructed by Exit. You are prohibited from using any of the trademarks as part of a corporate name. Franchisees must immediately notify Exit Realty Upper Midwest upon learning of any infringement or challenge to the use of Exit's trademarks. Exit retains the sole right to manage and resolve disputes with third parties concerning the trademarks and will defend franchisees against claims opposing their trademark use, provided the lawsuit is sent to Exit within seven days of receipt.
Exit also has the authority to add, delete, or modify the trademarks from time to time. If Exit Realty Upper Midwest notifies a franchisee to discontinue or modify a trademark, the franchisee must comply at their own expense within a reasonable time. Exit Realty Upper Midwest assumes no liability or obligation for any modifications or discontinuations of marks. The FDD lists several trademarks registered on the Principal Register of the United States Patent and Trademark Office, including "EXIT", "EXIT and Design", "I'M SOLD", and "Your Home, Next EXIT", among others.
This information is important for prospective franchisees as it clarifies the scope of trademark usage rights and responsibilities. Franchisees can be assured that Exit is actively managing and protecting its trademarks, but must also be aware of the restrictions and obligations associated with their use. Understanding these terms is crucial for maintaining brand consistency and avoiding potential legal issues related to trademark infringement.