Under what conditions is the Exit franchisee required to assist in the defense or prosecution of litigation relating to the Proprietary Marks?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
(C) If Subfranchisor or EXIT undertakes the defense or prosecution of any litigation relating to the Proprietary Marks, Franchisee agrees, without reimbursement or remuneration, to execute any and all documents and to do such acts and things as, in the opinion of legal counsel for Subfranchisor or EXIT, may be reasonably necessary for Franchisee to assist in such defense or prosecution.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a franchisee is required to assist in the defense or prosecution of litigation relating to the Proprietary Marks under specific conditions. If Exit or its subfranchisor undertakes the defense or prosecution of any litigation related to the Proprietary Marks, the franchisee must cooperate.
This assistance involves executing documents and performing actions deemed reasonably necessary by the legal counsel for Exit or the subfranchisor. The franchisee is expected to provide this assistance without receiving any reimbursement or remuneration for their time or expenses.
This obligation ensures that Exit can effectively protect its Proprietary Marks, which are critical to the brand's identity and success. By requiring franchisees to assist in legal matters, Exit aims to present a unified front against any challenges to its trademarks. This clause highlights the importance of franchisees' active participation in safeguarding the brand's intellectual property, even if it means contributing time and effort without direct compensation.