Am I required to apply for a Federal Employer Identification Number (EIN) as an Exit franchisee?

Based on the 2025 FDD, the Exit franchise agreement stipulates that if a franchisee desires to operate their business as a corporation, partnership, or limited liability company, they must inform the subfranchisor in writing and provide evidence of compliance with all requirements, as reasonably requested by the subfranchisor. The subfranchisor's written consent to operate as a business entity will be promptly granted upon compliance with these requirements.

This condition implies that while operating as an individual does not necessitate an EIN, forming a corporation, partnership, or LLC might. Generally, these business structures require an EIN from the IRS for tax purposes. However, the FDD does not explicitly state that an EIN is required.

Therefore, a prospective Exit franchisee should directly confirm with the franchisor or subfranchisor whether obtaining an EIN is a mandatory step when setting up their business as a corporation, partnership, or LLC. This confirmation will ensure full compliance with all requirements and avoid any potential issues during the franchise operation.