What elements comprise the 'Exit System' or 'System' for Exit franchisees?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
anchisees, sales representatives or nonlicensed persons under written contract with a Franchise, Subfranchise or EXIT. It is important that all EXIT Associates who maintain multiple roles within the EXIT System identify which role represents their "primary" role on appropriate EXIT documentation.
- (F) EXIT Formula: "EXIT Formula" means the system of fees and dues described in Schedule 2 attached to this Agreement.
- (G) EXIT System or System: "EXIT System" or "System" means the composite of elements designed to enable all EXIT franchisees and subfranchisors within the system to benefit from brand name identification in market competition, and includes Subfranchisor, the network of all subfranchisors; the network of all franchisees and all offices of franchisees; Broker Councils (as that term is defined in the Franchise Agreement); the Training Manuals; the Proprietary Marks; national and local advertising programs promoting EXIT System and Proprietary Marks; the training and other programs and meetings, written and other materials, standards, specifications, methods, techniques and procedures utilized in operating a subfranchisor business or a franchise office; and such other elements as EXIT may, from time to time, designate as additions or modifications to the EXIT System.
- (H) Franchise Agreement: "Franchise Agreement" means that agreement between Subfranchisor and Franchisee, which grants to Franchisee the right to use and be a part of the EXIT System, as amended from time to time.
- (I) Opened for Business: Franchisee shall be deemed to be "Opened for Business" at such time as Franchisee is operating the business franchised by this Agreement by making use of any of the EXIT marks licensed hereunder in any media, on business cards, by telephone, or by transacting any business under their EXIT trademark or by maintaining an office within the Protected Territory.
- (J) Permanent Disability or Permanently Disabled: "Permanent Disability" or "Permanently Disabled" means a mental or physical disability which precludes the individual from performing material and substantial duties of his or her employment, as reasonably determined by Subfranchisor. Payment of benefits for Permanent Disability under a disability insurance policy shall be conclusive as to the existence of the Permanent Disability, although such payments are not required in order to establish Permanent Disability for purposes of this Agreement.
- (K) Proprietary Marks: "Proprietary Marks"
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Exit System is a comprehensive collection of elements designed to provide franchisees and subfranchisors with brand recognition and competitive advantages. This system encompasses several key components. These include the subfranchisor network, the franchisee network, and all franchisee offices.
Additionally, the Exit System incorporates Broker Councils, Training Manuals, Proprietary Marks, and national and local advertising initiatives. These advertising programs are designed to promote both the Exit System and its Proprietary Marks. Training programs, meetings, written materials, standards, specifications, methods, techniques, and procedures are all utilized in the operation of both subfranchisor and franchise businesses.
Furthermore, Exit retains the right to designate additional elements or modifications to the Exit System over time. Franchisees are required to use computer hardware and software as required by Exit, potentially including proprietary software. License fees for computer software can reach up to $250.00 per month, although subsequent franchise agreements under the same entity may see a reduced fee of 25% of the standard monthly charge.