factual

Upon termination of the Exit franchise agreement, what must the franchisee immediately discontinue using?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

POST TERMINATION - RIGHTS AND OBLIGATIONS**

17.1. Obligations upon Termination or Non-renewal

If this Agreement is terminated or not renewed:

  • (A) All provisions in this Agreement concerning obligations of Franchisee to EXIT, Subfranchisor and the Broker's Council shall be deemed to survive the termination of this Agreement.
  • (B) All rights of Franchisee under this Agreement shall terminate and Franchisee shall immediately discontinue all use, imitation or duplication of all distinguishing characteristics of the System, including but not limited to, trade names, trademarks, service marks, membership marks, certification marks, copyrights, designs, slogans, logos, names, advertising copy or other printed or physical materials now or hereafter displayed, used or becoming a part of the System.

Source: Item 23 — RECEIPT (FDD pages 42–235)

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, upon termination or non-renewal of the franchise agreement, the franchisee must immediately discontinue all use, imitation, or duplication of the distinguishing characteristics of the Exit system. This includes, but is not limited to, trade names, trademarks, service marks, membership marks, certification marks, copyrights, designs, slogans, logos, names, advertising copy, or other printed or physical materials that are part of the Exit system. This obligation survives the termination of the agreement.

In practical terms, this means a franchisee can no longer operate under the Exit brand or use any materials associated with it. This includes signage, marketing materials, and any other items that identify the business as an Exit franchise. The franchisee must also take steps to differentiate their operations from Exit to avoid confusion among the public. This may involve changing the business's name, signage, and other identifying features.

Additionally, the franchisee must immediately execute all documents necessary to assign all of its Exit related domain names, internet web sites, web pages, and e-mail addresses to the Subfranchisor or its designee. The franchisee must also 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. These steps ensure that the franchisee no longer benefits from Exit's online presence or phone listings after termination.

These post-termination obligations are standard in franchising to protect the brand and prevent confusion. Franchisees should be aware of these requirements and plan accordingly if they decide to leave the Exit system. Failure to comply with these obligations could result in legal action from Exit.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.