Are there any circumstances where the Exit franchisee can request an extension to the acknowledgement deadline?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Whenever this Agreement may require the consent or approval of either party, such consent or approval shall not be unreasonably withheld. Response to requests of approval shall be given within a reasonable period of time.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, when the agreement requires consent or approval from either party, such consent or approval shall not be unreasonably withheld. Response to requests of approval shall be given within a reasonable period of time.
This means that if an Exit franchisee needs an extension for any acknowledgement deadline outlined in the franchise agreement, they can request it. However, Exit is obligated to not unreasonably withhold consent. The response to the request must be given within a reasonable timeframe.
This clause provides a degree of flexibility for Exit franchisees, ensuring that requests are considered fairly and responded to promptly. However, the terms "unreasonably withheld" and "reasonable period of time" are subjective and could potentially lead to disputes. It would be prudent for a prospective franchisee to understand Exit's interpretation of these terms and document all requests and responses in writing to avoid misunderstandings.