Upon termination or non-renewal of the Exit Franchise Agreement, what must the franchisee immediately discontinue using?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
(C) Franchisee shall immediately cease and refrain from using the System, or any parts thereof, and Franchisee shall immediately cease and refrain from holding itself out to the public in any way as a member of or as a former member of the System or as a Franchisee, Affiliate or operator of the System.
(D) Franchisee shall immediately distinguish its operations from that of EXIT, Subfranchisor, and of EXIT Affiliates so as to avoid every possibility of any confusion to the public.
(E) Franchisee, at its expense, shall make or cause to be made such changes in signs, telephone numbers, buildings or structures as EXIT or Subfranchisor may direct in order to distinguish Franchisee effectively from its former appearance and from other EXIT Affiliates.
The changes shall include a complete change in the trade name from that under which Franchisee conducted its business while affiliated with the System.
If Franchisee shall, upon request, fail or omit to make or cause to be made the changes within ten (10) days, then Subfranchisor shall have the right to enter upon the premises, without liability, and make, or cause to be made, the changes at the expense of Franchisee, which expenses shall be paid by Franchisee upon demand.
(F) Franchisee shall, at Subfranchisor's direction, file the appropriate forms to abandon and/or withdraw any assumed name certificate, to cease all activities with and claims to ownership of any trade or assumed name containing any Proprietary mark or to transfer the same to Subfranchisor, and/or to change the name of its corporation, partnership, or affiliate to eliminate any reference to the System.
(G) Franchisee shall immediately return to Subfranchisor all manuals, bulletins, instruction sheets, forms, marks, designs, signs, printed matter, and other material obtained by Franchisee under and pursuant to this Agreement, together with copies of the same that may have been made by Franchisee, or that are in its possession, custody or control.
(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.
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 System's distinguishing characteristics. This includes trade names, trademarks, service marks, membership marks, certification marks, copyrights, designs, slogans, logos, names, advertising copy, and other printed or physical materials that are part of the Exit system.
In practical terms, this means a franchisee can no longer operate under the Exit brand or use any of its associated branding. They must cease representing themselves as a current or former member of the Exit system. This is a standard practice in franchising to protect the brand's integrity and prevent confusion in the marketplace.
Furthermore, the franchisee is obligated to distinguish their operations from Exit and its affiliates to avoid any public confusion. This includes making necessary changes to signs, telephone numbers, buildings, or structures as directed by Exit or the subfranchisor. The franchisee must also take steps to abandon any assumed name certificates related to the Exit brand and transfer any relevant domain names, websites, and email addresses to the subfranchisor.