Through which entity may approved suppliers pay royalties to Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ning Manuals for furnishings, fixtures, equipment and operating supplies.
Approved Suppliers may pay EXIT, through Ah$um America, Inc., a royalty based on sales revenues for each product sold utilizing the EXIT Mark. The amount is negotiated with each approved supplier, as a percentage of revenues or a flat fee, and varies from Supplier to Supplier. Based on the most recent audited financial statements, EXIT, through Ah$um America, Inc., received $246,406.79 in royalties from Approved Suppliers in 2024 and $1,370,925.52 from its MEMO software license and access fees in 2024. The total of these amoun
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–18)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, approved suppliers may remit royalties to Exit through Ah$um America, Inc. These royalties are based on sales revenues generated from products that utilize the Exit Mark. The specific amount is determined through negotiations with each approved supplier, and can be structured as either a percentage of revenues or a flat fee. This amount varies from supplier to supplier.
In 2024, Exit received $246,406.79 in royalties from approved suppliers through Ah$um America, Inc. Additionally, Exit received $1,370,925.52 from its MEMO software license and access fees. The combined total of these revenues represented 6.9% of Exit's total revenues for 2024, which amounted to $19,674,709.52.
For a prospective franchisee, this means that Exit generates revenue not only from its franchisees but also from its approved suppliers. The royalty payments from approved suppliers are negotiated independently with each supplier. This revenue stream accounted for a notable percentage of Exit's overall income in 2024.