What conditions must an Exit franchisee meet during the term of the agreement to be eligible for renewal?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall have the option to renew this Agreement for subsequent five (5) year or ten (10) year terms (each referred to as a "Renewal Term"), provided that Franchisee has complied with the following conditions:
- (A) During the term of this Agreement, Franchisee has complied with all of the material terms and conditions of this Agreement and has complied with EXIT's operating and performance standards and procedures; and
- (B) Franchisee has given Subfranchisor written notice at least six (6) months prior to the end of the term of this Agreement of its intention to renew this Agreement for either five (5) or ten (10) years; and
- (C) Franchisee, on or before the first (1st) day of the Renewal Term, executes the then-current standard Franchise Agreement being offered to new Franchisees by the Subfranchisor for either five (5) or ten (10) year renewal, as requested by Franchisee; and
- (D) All monetary obligations owed by Franchisee to EXIT and Subfranchisor have been timely paid or satisfied prior to the end of the term of this Agreement, and have been timely paid throughout the term of this Agreement; and
- (E) Franchisee shall pay to Subfranchisor, on or before the first (1st) day of the Renewal Term, a Renewal Fee of ten percent (10%) of the then current Initial Franchise Fee for your size franchise territory (not to exceed 25% of the Initial Franchise fee paid) for a five (5) year term renewal or a Renewal Fee of fifteen percent (15%) of the then current Initial Fee for your size franchise territory (not to exceed 37.5% of the Initial Fee paid) for a ten (10) year term renewal; and
- (F) On or before the first (1st) day of the Renewal Term, Franchisee attends the training programs provided by Subfranchisor and EXIT for renewing franchisees.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a franchisee has the option to renew their agreement for subsequent five-year or ten-year terms, provided they meet certain conditions. These conditions include complying with all material terms and conditions of the agreement, as well as Exit's operating and performance standards and procedures, throughout the agreement's term.
To renew their Exit franchise agreement, a franchisee must provide written notice to the Subfranchisor at least six months before the end of the current term, indicating their intention to renew for either five or ten years. They must also execute the then-current standard Franchise Agreement offered to new franchisees by the Subfranchisor for the renewal term they request.
Furthermore, all monetary obligations owed by the franchisee to Exit and the Subfranchisor must be paid in a timely manner, both before the end of the current term and throughout its duration. The franchisee must also pay a renewal fee on or before the first day of the renewal term. This fee is 10% of the then-current initial franchise fee for a five-year renewal or 15% for a ten-year renewal, with caps of 25% and 37.5% of the initial fee paid, respectively. Finally, the franchisee must attend the training programs provided by the Subfranchisor and Exit for renewing franchisees on or before the first day of the renewal term.