Under what circumstances is an Exit franchisee considered 'Opened for Business'?

According to Exit's 2025 Franchise Disclosure Document, a franchisee is considered 'Opened for Business' when they start operating the franchised business. This is specifically defined as using any of the Exit marks in any media, on business cards, by telephone, or by transacting any business under their Exit trademark. Maintaining an office within the Protected Territory also signifies that the franchisee is 'Opened for Business'.

This definition is important for several reasons. It clarifies the point at which the franchisee is expected to fully engage with the Exit brand and business model. It also likely triggers certain obligations and performance expectations from both the franchisee and the subfranchisor. For example, the subfranchisor has obligations to provide support and supervision to ensure compliance with the Exit system once the franchisee is operating.

Furthermore, the 'Opened for Business' definition is tied to the timeline for opening the Exit office. The FDD states that failure to open the Exit office and commence business operations within 120 days of the franchise agreement date can be grounds for termination of the agreement, with no opportunity to correct the issue. Therefore, franchisees need to be aware of what constitutes being 'Opened for Business' to avoid potential default situations.

In summary, the definition of 'Opened for Business' is a key milestone in the Exit franchise relationship, marking the transition from preparation to active operation and triggering important obligations and deadlines for both parties.