Does the definition of Exit 'Continuing Fees' include MEMO fees?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (D) Continuing Fees: "Continuing Fees" means the fees and dues paid by Franchisee pursuant to the EXIT Formula including the MEMO fees outlined in Section 9.13 of the Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Continuing Fees do include MEMO fees. The document defines "Continuing Fees" as the fees and dues paid by the franchisee according to the EXIT Formula, specifically including the MEMO fees outlined in Section 9.13 of the Franchise Agreement.
This means that as a franchisee, you will be required to pay continuing fees that are calculated as part of the EXIT Formula, and these fees will include MEMO fees. It is important to understand how these fees are calculated and when they are due, as they are a recurring expense throughout the term of the franchise agreement.
Prospective franchisees should carefully review Section 9.13 of the Franchise Agreement to fully understand the nature and amount of MEMO fees, as well as Schedule 2, which describes the EXIT Formula. Understanding these fees is crucial for accurately forecasting expenses and assessing the financial viability of the franchise.