Are the Advertising Funds intended for the direct benefit of any specific Exit franchisee?

According to Exit's 2025 Franchise Disclosure Document, the advertising funds are intended to benefit the Exit name and system generally, rather than any specific franchisee directly. While Exit anticipates that all franchisees will benefit from increased brand awareness, the funds are not specifically earmarked for individual franchisee's direct benefit, with the exception of the Regional Development Fund. The Regional Development Fund is used solely for regional development in the region in which the funds are generated.

Exit uses advertising funds to cover the costs of administering, directing, preparing, placing, and paying for advertising and promotion at the national, regional, and local levels. The FDD specifies that Exit is not required to keep the money paid by franchisees to the Funds, or income earned by the Funds, in separate accounts. The document also states that no more than 10% of the advertising funds were used principally to solicit new franchise sales.

For the most recently concluded calendar year, Exit spent 11.87% of the Funds on production, 2.01% of the Funds on media placement, 0% of the Funds on administrative expenses, 57.5% of the Funds on EXIT's website and internet marketing, 16.43% of the Funds on promotions and 40.51% of the Funds for regional development. Franchisees should note that there is no advertising council composed of franchisees to advise Exit on advertising policies, and the Franchise Agreement does not grant franchisees the power to form, change, or dissolve such a council. This means individual franchisees have limited direct influence over how the advertising funds are spent, further emphasizing that the funds are managed for the overall benefit of the Exit brand.