What is the condition for Exit to modify the Exit Formula?
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 system of fees and dues, cannot be changed or modified without 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 modifications to the Exit Formula become effective upon notice to all Subfranchisors and Franchisees. It is the franchisee's responsibility to inform their Sales Representatives and employees of any changes to the Exit Formula.
This means that as a prospective Exit franchisee, you should understand that while the Exit Formula is generally fixed, Exit does have the ability to make changes, particularly regarding annual membership and fees. However, these changes are capped at a 5% increase per year, and any unused portion of a potential increase less than 5% can be carried over to future years. Franchisees will be notified of any modifications, and it is crucial to keep your team informed of these changes.