Does the estimated initial investment for an Exit franchise include an owner's salary or draw?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
e monthly lease payment included in this table ranges from $400-$800.
Note 7 This estimate includes legal expenses, staff salaries, utilities and operating expenses for the first 6 months of operation. The estimate includes travel, lodging and incidental expenses for initial training. Tuition is not charged for attendance of approved attendees at initial training. EXIT charges you $500.00, if you sign up and fail to attend the training or cancel on less than 30 days' notice. The estimate does not include an owner's salary or draw. These figures are estimates and will vary by your geographic area; how much you follow our methods and procedures; your management skill, experience and business acumen; the relative effectiveness of your staff; local economic conditions; competition; and the revenue level reached during the initial period. We cannot guarantee that you will not have additional expenses starting the business. This estimate was calculated based upon the averag
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–17)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the estimated initial investment does not include an owner's salary or draw. The document specifies that the estimate covers various expenses like legal fees, staff salaries, utilities, and operating costs for the first six months, as well as travel and lodging for initial training. However, it explicitly excludes any compensation for the owner.
This means that prospective Exit franchisees need to have sufficient capital to cover their personal living expenses during the initial phase of the business, in addition to the $60,800 to $209,000 estimated for the initial investment. This is a crucial consideration for budgeting and financial planning, as the business may not generate enough revenue immediately to provide a sustainable income for the owner.
It is common for franchise agreements to exclude the owner's salary from the initial investment estimates. This is because the owner's draw can vary significantly based on their lifestyle, location, and personal financial obligations. Therefore, Exit franchisees should carefully assess their personal financial needs and ensure they have adequate resources to support themselves until the business becomes profitable enough to provide a sufficient income.