What was the assignment income for Exit in 2024?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended December 31 | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Franchise revenues: | ||||
| Initial franchise fees | $ 90,956 | $ 104,355 | $ 107,263 | |
| Franchise commission | 396,513 | 575,252 | 748,794 | |
| Assignment income | 15,132 | 11,181 | 10,282 | |
| Total franchise revenues | $ 502,601 | $ 690,788 | $ 866,339 |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the assignment income for the year 2024 was $15,132. This income is part of the total franchise revenues, which also include initial franchise fees and franchise commissions. Assignment income represents fees collected when existing franchisees transfer their franchise rights to new owners.
For a prospective Exit franchisee, understanding the sources of revenue for the franchisor is crucial. Assignment income, while a smaller portion of the total revenue compared to franchise fees and commissions, indicates the level of franchise resales or transfers within the Exit system. A steady or increasing assignment income could suggest a healthy market for existing Exit franchises.
It's important to note that this figure reflects only the assignment income received by the franchisor, Exit, and not any profits or losses realized by individual franchisees who may have sold their franchises. Prospective franchisees should investigate further to understand the reasons behind franchise resales and the financial performance of transferred franchises.