Is there an automatic renewal for the Exit Sales Representative Agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- a) Initial Term and Renewal. The term of this Agreement shall be for a period of 1 year from the date first written above. The Agreement will automatically be renewed for further periods of 1 year, unless terminated in writing by either party at least 60 days before the end of the term in effect. Upon renewal, the Renewal Form attached as Schedule 3 to this Agreement, or the most current Renewal Form, if it has been amended since the date of this Agreement, shall be completed by both parties
- b) Termination Without Cause. Either party may terminate this Agreement without cause, on giving not less than 30 days written notice to the other party.
- c) Termination for Cause. If Sales Representative fails to comply with the terms of this Agreement or any other agreement with an EXIT franchisee, this will be considered cause for EXIT [Trade Name] to terminate this Agreement immediately.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Sales Representative Agreement has an initial term of one year. The agreement automatically renews for additional one-year periods unless either party terminates it in writing at least 60 days before the current term expires. Upon renewal, both parties must complete the Renewal Form attached as Schedule 3 to the agreement, or the most current version of the Renewal Form if it has been amended.
This automatic renewal clause provides both Exit and the sales representative with a degree of stability and continuity. The franchisee can expect continued service from their sales representatives, and the sales representatives can rely on continued income, provided that neither party actively chooses to terminate the agreement.
However, both parties have the right to terminate the agreement. Either party can terminate the agreement without cause by giving at least 30 days written notice to the other party. Exit can terminate the agreement immediately if the sales representative fails to comply with the terms of the agreement or any other agreement with an Exit franchisee. This termination clause ensures that either party can end the relationship if it is no longer beneficial or if there is a breach of contract.