What is the U.S. Creative Fund fee for Exit franchisees who pay a $400 fee?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenue**
All Commissions are to be entered into MEMO and will be subject to transaction fees unless the gross revenue is $250.00 or less.
e) Payment
Transaction Fees are payable by Franchise to Subfranchise and EXIT. Transaction Fees are payable at the finalization of the Transaction Side and are deducted from the Sales Representative's portion of the Commission.
3
A portion of each Transaction Fee is allocated as follows:
| Initial | |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a portion of fees from each sale or lease transaction is allocated to various funds, including the U.S. Creative Fund. The amount contributed to the U.S. Creative Fund depends on the initial fee amount. For franchisees who pay a $400 fee, $13.33 is allocated to the U.S. Creative Fund. This fund is used by Exit to develop concepts and programming for national and local advertising.
Exit manages the U.S. Creative Fund and uses it to pay employees and subcontractors for advertising services. The funds are not audited, and Exit has sole discretion over deposits into and expenditures from the fund. This means Exit is not obligated to spend a specific amount on advertising in any particular area or region.
For a prospective franchisee, this means that while a portion of their fees contributes to advertising efforts, Exit ultimately decides how and where those funds are spent. Franchisees should consider this when evaluating the potential benefits of the franchise's advertising support.