What costs can the Advertising Funds be used to meet for Exit?

According to Exit's 2025 Franchise Disclosure Document, the advertising funds may be used to cover all costs associated with administering, directing, preparing, placing, and paying for advertising and promotion at the national, regional, or local level. This means that Exit has broad discretion in how it uses these funds to promote the brand.

Specifically, Exit allocates advertising fees to three different funds: the United States Creative Fund, the United States Promotional Fund, and the Regional Development Fund. The United States Creative Fund is used to develop concepts and programming for both national and local advertising, compensating Exit's employees and subcontractors for their advertising services. The United States Promotional Fund is used for advertising and promotion across various media, including radio, television, internet, newspapers, and trade magazines. The Regional Development Fund is dedicated to purchasing advertising services within the specific region where the fees are generated, ensuring that these funds directly benefit the local market.

In the most recently concluded calendar year, Exit allocated its advertising funds as follows: 11.87% to production, 2.01% to media placement, 0% to administrative expenses, 57.5% to Exit's website and internet marketing, 16.43% to promotions, and 40.51% for regional development. This breakdown illustrates Exit's focus on digital marketing and regional advertising efforts. It is important to note that no more than 10% of the advertising funds were used to solicit new franchise sales, indicating that the primary focus is on promoting the Exit brand and supporting existing franchisees.

Prospective franchisees should be aware that Exit is not required to spend any specific amount on advertising in any particular area or region, except for the Regional Development Fund, which must be used solely for regional development in the region where the funds are generated. Additionally, there is no advertising council composed of franchisees to advise Exit on advertising policies, and franchisees do not have the power to form, change, or dissolve such a council. Franchisees are required to contribute to the Advertising Funds at the same rate, and Exit administers the funds and provides an accounting of advertising expenditures upon written request. Any funds remaining at the end of a calendar year are carried over for future use.