Under what conditions can an Exit franchisee relocate their franchise office?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
3.2. Approval Needed for Relocation
- (A) Franchisee may, at its sole cost and expense and upon written approval of Subfranchisor, which approval shall not be unreasonably withheld, relocate its Franchise office, provided the new office is located within the Protected Territory and meets the minimum square footage and other requirements set forth in Section 3.1 above.
- (B) Franchisee may not open a second location or branch office within the Protected Territory without prior written approval of Subfranchisor. A second location or branch office will be subject to all of the terms, fees, and royalties set forth in this Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a franchisee can relocate their office under specific conditions. The franchisee must obtain written approval from the subfranchisor to relocate the Exit office. This approval will not be unreasonably withheld.
The new location must be within the franchisee's protected territory. Additionally, the new office space must meet the minimum square footage and other requirements as outlined in Section 3.1 of the franchise agreement. Section 3.1 specifies that the office should be between 750 and 2,000 square feet, depending on the size of the protected territory, and be equipped with necessary furniture, phones, and office equipment.
The franchisee is responsible for all costs associated with relocating the Exit office. These costs include expenses related to acquiring, leasing, and operating the new location. Furthermore, without prior written approval from the subfranchisor, the franchisee cannot open a second location or branch office within the protected territory, and any approved second location or branch office will be subject to all terms, fees, and royalties outlined in the Franchise Agreement.