What is the condition for any modification to the Exit Formula to become effective for Exit?
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, any modification to the Exit Formula becomes effective once notice is given to all Subfranchisors and Franchisees. It is then the Franchisee's responsibility to inform their Sales Representatives and employees of these changes.
This means that Exit franchisees must stay informed of any updates to the Exit Formula and promptly communicate these changes to their team. This ensures everyone within the Exit system operates under the most current guidelines.
Exit also retains the right to modify the Exit Formula, including increasing the Annual Membership and fees by up to 5% per year. If Exit increases any amounts less than 5%, the unused portion may be carried over to subsequent years. This clause gives Exit some flexibility in adjusting fees, but also provides a degree of predictability for franchisees, as increases are capped at 5% annually.