What is the U.S. Charitable Fund fee for Exit franchisees who pay a $225 fee?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenue**
All Commissions are to be entered into MEMO and will be subject to transaction fees unless the gross revenue is $250.00 or less.
e) Payment
Transaction Fees are payable by Franchise to Subfranchise and EXIT. Transaction Fees are payable at the finalization of the Transaction Side and are deducted from the Sales Representative's portion of the Commission.
3
A portion of each Transaction Fee is allocated as follows:
| Initial | |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, when an Exit franchisee pays a $225 fee, $7.50 is allocated to the U.S. Charitable Fund. This fund is one of several that Exit administers, including the U.S. Creative Fund, U.S. Advertising Fund, Regional Development Fund, and Administrative Fund. These funds are supported by a portion of the fees generated from each sale or lease transaction.
The U.S. Charitable Fund is used by Exit to make donations to U.S. charities selected by Exit. The document specifies that none of these funds are audited, and all deposits to and expenditures from the funds are at the sole discretion of Exit. This means Exit has complete control over how the money in the Charitable Fund is spent and is not obligated to spend any specific amount in any particular area or region.
For a prospective Exit franchisee, this means that a portion of their fees will go towards charitable donations, but they will have no control over which charities receive the money or how the funds are used. The lack of auditing for these funds might be a concern for some franchisees, as it provides less transparency regarding the allocation of these fees. It is important for potential franchisees to consider this when evaluating the overall cost and benefits of investing in an Exit franchise.