What are 'Continuing Fees' for an Exit franchisee, and where are the MEMO fees outlined?

According to Exit's 2025 Franchise Disclosure Document, Continuing Fees are defined as the fees and dues paid by the franchisee according to the EXIT Formula, which includes MEMO fees as outlined in Section 9.13 of the Franchise Agreement. The EXIT Formula itself is further detailed in Schedule 2 of the agreement.

In practical terms, this means that in addition to the initial franchise fee, Exit franchisees must pay ongoing fees during the term of their agreement. These continuing fees are calculated using the EXIT Formula, a system of fees and dues detailed in Schedule 2 of the Franchise Agreement. A portion of these continuing fees specifically covers the use of Exit's proprietary software system called MEMO.

Section 9.13 outlines that franchisees are required to use computer hardware and software as required by Exit, including the MEMO software. Franchisees must also submit reports and records as specified by Exit and the Subfranchisor. The franchisee also agrees to pay a license fee not to exceed $250 per month for the computer software. If a franchisee owns more than one Exit franchise, and those agreements are operated by the same legal entity and use the same trade name, the monthly computer software license fee for the second and subsequent Franchise Agreements shall be reduced to twenty-five percent (25%) of the monthly license fee charged as of the date that the subsequent Franchise Agreement(s) is signed.