What is the condition for any modification to the Exit Formula to become effective?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
It is understood that this EXIT Formula may not be changed or modified in any way without the prior express written permission of EXIT. EXIT reserves the right to modify this EXIT Formula and may increase the Annual Membership and fees up to 5% per year. If EXIT increases any amounts less than 5%, the unused portion may be carried over to subsequent years. Any modification shall become effective upon notice to all Subfranchisors and Franchisees. It shall be Franchisee's obligation to notify its Sales Representatives and employees of modifications in the EXIT Formula.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Exit Formula, which outlines the fees and dues within the Exit system, can only be modified with Exit's prior express written permission. Exit retains the right to modify the Exit Formula and may increase the Annual Membership and fees up to 5% per year. If Exit increases any amounts less than 5%, the unused portion may be carried over to subsequent years.
Any modification to the Exit Formula becomes effective once all Subfranchisors and Franchisees receive notice of the change. It is then the Franchisee's responsibility to inform their Sales Representatives and employees about these modifications.
This means that as a prospective Exit franchisee, you should pay close attention to any official notices regarding changes to the Exit Formula, as these changes will be binding once communicated. Furthermore, you will be responsible for ensuring that your team is also aware of any modifications. This highlights the importance of clear communication channels within your franchise to stay compliant with Exit's policies.