What were Exit's advertising and promotion expenses for the year ended December 31, 2024?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
elopment rights). Franchise fee renewals are charged 10% of the then current initial franchise fee (not to exceed 25% of the initial franchise fee originally paid by the franchisee) and amortized as revenue over
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the company's advertising and promotion expenses for the year ending December 31, 2024, totaled approximately $2,335,585. This figure reflects the costs Exit incurred for advertising and promotional activities during that year. For comparison, advertising and promotion expenses for the years ending December 31, 2023, and December 31, 2022, were $2,858,720 and $2,879,727, respectively.
It is important to note that these expenses are incurred by Upper Midwest Realty, Inc. d.b.a. Exit Realty Upper Midwest, as indicated in the provided financial statement. This suggests that the advertising and promotion activities are specific to the Upper Midwest region. As a prospective franchisee, it is important to understand how these advertising and promotion efforts benefit franchisees in that region and whether similar support is available in other regions.
Understanding the scale and scope of Exit's advertising and promotion efforts can help a potential franchisee assess the brand's visibility and marketing support. However, it is important for potential franchisees to investigate the specific advertising strategies and their effectiveness in their target market. This includes understanding the allocation of advertising funds, the types of media used, and the overall marketing plan to ensure it aligns with their business goals.