What was the amount of reduction of franchise fees arising from restructuring of related notes payable for Exit franchisees in the year ending December 31, 2022?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
aster Broker Summit 171 5.1.8. EXIT Convention 172 5.1.9. Buffini & Company 173 5.1.10. Special Interest Webinars 174 6. UPDATES LOG 175 | · · · · · · · · · · · · · · · · · · · | | 5.1.7. Master Broker Summit 171 5.1.8. EXIT Convention 172 5.1.9. Buffini & Company 173 5.1.10. Special Interest Webinars 174 6. UPDATES LOG 175 | | | 5.1.8. EXIT Convention 172 5.1.9. Buffini & Company 173 5.1.10. Special Interest Webinars 174 6. UPDATES LOG 175 | , , , , , , , , , , , , , , , , , , , , | | 5.1.10. Special Interest Webinars | | | 5.1.10. Special Interest Webinars | 5.1.9. Buffini & Company | | | | | | 6. UPDATES LUG | | TOTAL NUMBER OF PAGES | TOTAL NUMBER OF PAGES |
TRAINING MANUAL – VOLUME 2 BROKER TRAINING MANUAL 2024 Table of Contents
Table of Contents
| 2024 | 2023 | 2022 | |---|---|---| TOTAL NUMBER OF PAGES 246
EXHIBIT D LIST OF OPEN FRANCHISES
EXHIBIT D – 1 LIST OF FRANCHISEES THAT HAVE FRANCHISE AGREEMENTS SIGNED BUT NOT OPENED
EXHIBIT D - U.S Open Office List
| Cash paid during the year for: | ||||
|---|---|---|---|---|
| Cash paid during the year for interest | $ 49,502 | $ 74,777 | $ 90,746 | |
| Deferred rent reclassified as operating lease | ||||
| --- | --- | --- | --- | |
| right-of-use assets | $ - | $ - | $ 69,213 | |
| Leasehold improvement allowances reclassified as | ||||
| --- | --- | --- | --- | |
| operating lease right-of-use asset | $ - | $ - | $ 189,111 | |
| Operating lease liability arising from recognition of | ||||
| --- | --- | --- | --- | |
| right-of-use asset | $ - | $ - | $ 428,236 | |
| Unrealized holding gains (losses) on investments included | ||||
| --- | --- | --- | --- | |
| in accumulated other comprehensive income (loss) | $ 5,568 | $ 7,017 | $ (9,239) | |
| Accounts receivable applied to notes payable | $ - | $ - | $ 10,100 | |
| Acquisition of franchise territory right renewals financed | ||||
| --- | --- | --- | --- | |
| with notes payable | $ - | $ 287,044 | $ - | |
| Reduction of franchise fees arising from restructuring | ||||
| of related notes payable | $ - | $ 1,275,185 | $ - | |
| Proceeds from sales of available-for-sale securities | ||||
| --- | --- | --- | --- | |
| reinvested | $ 1,307 | $ 1,380 | $ - | |
| Reclassification adjustment for net losses included in | ||||
| net losses | $ - | $ 425 | $ - | |
| Amortization | Accumulated | Net Carrying | ||
| --- | --- | --- | --- | --- |
| December 31, 2024 Period | Cost | Amortization | Value | |
| Franchise territories 10 years | $ 838,959 | $ (111,458) | $ 727,501 | |
| Organization costs 15 years | 7,062 | (4,749) | 2,313 | |
| Total | $ 846,021 | $ (116,207) | $ 729,814 | |
| December 31, 2023 | ||||
| Franchise territories 10 years | $ 838,959 | $ (27,862) | $ 811,097 | |
| Organization costs 15 years | 7,062 | (4,279) | 2,783 | |
| Total | $ 846,021 | $ (32,141) | $ 813,880 | |
| December 31, 2022 | ||||
| Franchise territories 8-15 years | $ 4,089,613 | $ (2,097,776) | $ 1,991,837 | |
| Organization costs 15 years | 7,062 | (3,808) | 3,254 | |
| Total | $ 4,096,675 | $ (2,101,584) | $ 1,995,091 | |
| For the Years Ending December 31 | Amount | |||
| --- | --- |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, during the year ending December 31, 2022, there was a reduction of $0 in franchise fees arising from the restructuring of related notes payable.
This indicates that Exit franchisees did not experience any reduction in franchise fees due to the restructuring of notes payable during this specific period. This could be due to various factors, such as no restructuring activities occurring that year or the restructuring not involving a reduction of franchise fees.
Prospective franchisees should inquire with Exit about the circumstances surrounding note payable restructurings and whether such restructurings have historically led to franchise fee reductions in other periods. Understanding the conditions under which franchise fees might be reduced can help franchisees better assess their financial obligations and potential benefits.