What is the expected minimum future sublease rental income for Exit in 2026?

According to Exit's 2025 Franchise Disclosure Document, the expected minimum future sublease rental income for 2026 is $30,300. This income is derived from subleasing a portion of Exit's leased space to unrelated third parties. These sublease agreements can be cancelable or noncancelable, with varying start and expiration dates.

For a prospective Exit franchisee, this sublease income can offset the operating lease expenses, which include amortization of leasehold improvements. In 2024, 2023, and 2022, operating lease expenses totaled $94,117, $106,186, and $101,019, respectively, while sublease rental income totaled $51,895, $74,673, and $53,050 for the same years. This indicates that sublease income can significantly reduce the net lease expense for Exit.

It's important to note that the sublease agreements are subject to change, and the income may vary depending on the terms of the agreements and the occupancy of the subleased space. The FDD also mentions that Exit has had multiple active subleases during the years ended December 31, 2024, 2023, and 2022, suggesting that subleasing is a consistent practice for the company. Franchisees should inquire about the details of current and potential sublease agreements to understand the potential income and associated risks.