What document must Exit franchisees and their equity holders complete to become EXIT Associates?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (D) Franchisee, or if Franchisee is an entity, all equity holders of the entity, shall become EXIT Associates and complete the EXIT Associate Profile, attached as Schedule 5 to this agreement. If Franchisee or any of its equity holders were "sponsored" into the EXIT System, prior to buying this Franchise, that Sponsorship will not change. If Franchisee or any of its equity holders were not sponsored into the EXIT System prior to purchasing this Franchise, those persons will be named as their own Sponsor. If a "self-sponsored" equity holder of the Franchisee terminates its equity holder relationship with the Franchisee, but stays in the EXIT System, the Sponsorship of that equity holder shall be transferred to the Subfranchisor.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees and their equity holders must complete the EXIT Associate Profile to become EXIT Associates. Specifically, Schedule 5 of the agreement contains the EXIT Associate Profile.
Becoming an EXIT Associate is a requirement for franchisees and their equity holders. If a franchisee or any of its equity holders were sponsored into the EXIT System prior to buying the franchise, that sponsorship will not change. However, if they were not sponsored before purchasing the franchise, they will be named as their own sponsor.
It is also important to note that franchisees must promptly and accurately report and enter all EXIT Associates into EXIT's proprietary software program, MEMO. This reporting should occur when sales representatives are registered in the Multiple Listing Service (MLS) system and when non-licensed persons meet the qualification requirements outlined in the EXIT Formula.