Under what condition is an Exit franchisee not obligated to change their telephone numbers after the agreement expires?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (H) Franchisee shall immediately cause the local telephone company to change all of its telephone numbers and assign the numbers listed for the franchised real estate office to Subfranchisor.
If at the expiration of this Agreement, Franchisee has complied with all of its financial obligations to EXIT and Subfranchisor and it is not otherwise in default, Franchisee shall not be obligated to comply with the provisions of this Subsection 17(H).
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, an Exit franchisee is typically required to change their telephone numbers and assign them to the subfranchisor upon the expiration of the franchise agreement. However, this obligation is waived if the franchisee has met all financial obligations to both Exit and the subfranchisor and is not otherwise in default of the agreement. This provision is outlined in Item 23, detailing the franchisee's responsibilities upon termination or non-renewal of the agreement.
For a prospective Exit franchisee, this means maintaining good financial standing and adhering to all terms of the franchise agreement is crucial. Failure to do so could result in the added burden of having to change telephone numbers, which can disrupt business continuity and customer relationships. Ensuring all payments are up-to-date and that there are no outstanding defaults can provide a smoother transition at the end of the franchise term, whether the franchisee chooses to renew or not.
This condition highlights the importance of diligent financial management and compliance throughout the franchise term. Franchisees should keep accurate records of all payments and communications with Exit and the subfranchisor to demonstrate their adherence to the agreement. In the event of any disputes or uncertainties, seeking clarification and resolution promptly can help avoid potential defaults and ensure eligibility for the waiver of the telephone number change requirement.