Under what conditions can Exit assign its rights and obligations under the agreement?

According to Exit's 2025 Franchise Disclosure Document, Exit may assign its rights and obligations under the agreement to any successor to the business of Exit or any part of its business. Upon assignment, Exit is relieved of all obligations under the agreement arising after the date of the assignment.

However, the Franchisee's ability to transfer the agreement is limited. The rights and duties in the Franchise Agreement are personal to the Franchisee. The Franchisee cannot sell, assign, transfer, convey, give away, pledge, mortgage, or otherwise encumber any direct or indirect interest in the Franchise or the Agreement without prior written consent of the Subfranchisor.

If the Franchisee desires to operate as a corporation, partnership, or limited liability company, Exit or the Subfranchisor will provide written consent to assign the agreement to such an entity under specific terms. These terms include the entity possessing a valid real estate broker's license, all individuals executing the agreement remaining personally liable, the entity being legally authorized to do business in the relevant state, and the entity's activities being primarily concerned with the Exit real estate service business. Additionally, at least 51% of the voting equity and all equity of the assignee entity must be owned or controlled by one of the individuals who executed the agreement.

These restrictions must be conspicuously endorsed on each equity certificate and indicated in the governing documents of the entity. The assignee entity's capitalization must be approved in writing by the Subfranchisor, who must also receive copies of the entity's charter documents, organizational documents, meeting minutes, buy-sell agreements, and other relevant documents. The entity's legal name cannot be similar to Exit Realty Corp.'s trademarks or service marks.