What are the consequences of not paying the Exit annual membership fee?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
4. Annual Membership
EXIT Formula (U.S. Version Rev. 03.23.25)
a) Each EXIT Associate shall pay to EXIT an Annual Membership of $425.00. The Annual Membership is non-refundable and is due and payable on the Effective Date of the Sales Representative's Agreement or the date the person becomes a part of the EXIT System, as applicable, and on each July 1st thereafter. The Annual Membership for the first year shall be prorated based on the number of days to the following July 1st.
1
[Item 23: RECEIPT]
- c) The payment of the Annual Membership is an absolute prerequisite for the receiving of any and all EXIT Sponsoring Bonuses, Retirement Benefits and awards and to ensure a presence on the EXIT website as well as access to EXIT resources. The Franchisor reserves the right to deduct the Annual Membership from said payments whenever necessary.
- d) Franchises are responsible for the payment and collection of the Annual Membership from EXIT Associates. Franchise shall pay the Annual Membership to EXIT immediately upon the date that the new Sales Representative or EXIT Associate Agreement is signed and upon the annual renewal date of July 1st. Payment shall be by electronic funds transfer or by Franchise's check. Annual Membership payable on the July 1st renewal date may also be paid online directly by EXIT associates by VISA® or MasterCard®. Personal checks will not be accepted.
- e) Any amount not paid by the seventh (7th) day after its due date shall be charged a late fee of $50.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the annual membership fee for each Exit Associate is $425.00. This fee is non-refundable and is due upon the effective date of the Sales Representative's Agreement or when the person becomes part of the Exit system, and annually on July 1st thereafter. The first year's fee is prorated based on the number of days until the following July 1st.
Failure to pay the annual membership has several consequences. Associates will not receive any Exit Sponsoring Bonuses, Retirement Benefits, or awards. They will also lose their presence on the Exit website and access to Exit resources. Exit reserves the right to deduct the annual membership fee from any payments owed to the associate. Additionally, any amount not paid within seven days of the due date will incur a late fee of $50.
Franchises are responsible for collecting and paying the Annual Membership fees of their Exit Associates. These fees must be paid to Exit immediately upon the signing or annual renewal of the Sales Representative or Exit Associate Agreement, which occurs on July 1st. Payment should be made via electronic funds transfer or by the Franchise's check, although Exit associates can pay online via VISA® or MasterCard®. Personal checks are not accepted.
These policies ensure that Exit maintains consistent revenue and that associates remain active and engaged within the Exit system. For prospective franchisees, it's crucial to understand these payment terms and the associated consequences to effectively manage their franchise and ensure their associates remain in good standing.