What is the timeframe for an Exit franchisee to open their office to avoid termination without a right to cure?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (B) No Right to Cure.
Set forth below are events of default which, upon their occurrence, shall give Subfranchisor the right to terminate this Agreement after notice to Franchisee and with no right to cure, as described in Section 16.2:
- (i) Franchisee fails to open its EXIT office and commence business operations within one hundred and twenty (120) days of the date of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a franchisee must open their Exit office and commence business operations within 120 days of the franchise agreement date. Failure to do so constitutes a default that gives the subfranchisor the right to terminate the agreement without any opportunity for the franchisee to correct the issue. This requirement is designed to ensure that franchisees promptly establish and begin operating their Exit business.
This provision is significant because it sets a firm deadline for opening the franchise. Missing this deadline can lead to immediate termination, regardless of any investments or preparations the franchisee has made. The franchisee does not have a chance to remedy the situation. This differs from other default scenarios where the franchisee may have a period to correct the issue before termination occurs.
Prospective Exit franchisees should carefully note this 120-day requirement and ensure they have a realistic plan for securing a location, completing necessary build-out, and obtaining any required licenses within this timeframe. They should also confirm the exact date of the franchise agreement to accurately calculate the deadline for opening their office. This is a critical step in avoiding a no-cure termination scenario.