What is the U.S. Advertising Fund fee for Exit franchisees who pay a $150 fee?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenue**
All Commissions are to be entered into MEMO and will be subject to transaction fees unless the gross revenue is $250.00 or less.
e) Payment
Transaction Fees are payable by Franchise to Subfranchise and EXIT. Transaction Fees are payable at the finalization of the Transaction Side and are deducted from the Sales Representative's portion of the Commission.
3
A portion of each Transaction Fee is allocated as follows:
| Initial | |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a franchisee who pays a $150 fee will have $36.00 allocated to the U.S. Advertising Fund. This fund is used for advertising and promotion within the Exit system, with all deposits to and expenditures from the fund at the sole discretion of Exit.
The U.S. Advertising Fund is one of several funds that Exit deposits fees into, including the U.S. Creative Fund, U.S. Administrative Bonus Fund, and U.S. Charitable Fund. These funds are administered by Exit and used for various purposes such as creating advertising concepts, providing administrative bonuses, and making charitable donations.
It's important to note that Exit is not required to spend any specific amount on advertising or promotion in any particular area or region. This means that while franchisees contribute to the U.S. Advertising Fund, there is no guarantee that these funds will be used to directly benefit their specific franchise location. Prospective franchisees should consider this when evaluating the costs and benefits of investing in an Exit franchise.