Does the Exit FDD receipt acknowledgement relate to any minimum investment amount for the Exit franchise?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
6. INITIAL FEE
Upon the execution of this Agreement, Franchisee shall pay Subfranchisor, by cashier's check or wire transfer, an initial fee in the amount of [insert franchise price] (hereinafter "Initial Fee"). The Initial Fee shall be fully earned by Subfranchisor upon the execution of this Agreement, and no portion of the Initial Fee shall be refundable. The grant of this franchise and the payment of the Initial Fee provide Franchisee no rights regarding such other licenses, franchises or additions to the Protected Territory. No rights or privileges under this Agreement shall exist until the Initial Fee is paid.
7. CONTINUING FEES
7.1. EXIT Formula.
In addition to the Initial Fee, Franchisee, during the term of this Agreement and any extensions or renewal terms, shall pay Continuing Fees in accordance with the EXIT Formula (as incorporated in Section 19), which amounts shall be collected and paid to Subfranchisor or EXIT according to the EXIT Formula and as directed by Subfranchisor or EXIT, according to the Subfranchise Agreement between them. Continuing Fees shall be paid by electronic bank transfer or by such means as Subfranchisor and EXIT may direct.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
The 2025 Exit Franchise Disclosure Document's Item 23, which covers receipts, does not explicitly mention a receipt acknowledgement related to a minimum investment amount. However, it does detail the initial fee and other fees associated with the franchise. Specifically, upon signing the agreement, the franchisee must pay an initial fee, the amount of which is to be inserted in the franchise agreement. This initial fee is non-refundable and is fully earned by the subfranchisor upon execution of the agreement.
In addition to the initial fee, Exit franchisees are obligated to pay continuing fees throughout the term of the agreement, in accordance with the Exit Formula, as detailed in Section 19 of the agreement. These continuing fees are collected and paid as directed by the subfranchisor or Exit.
While the FDD excerpts do not specify a minimum investment amount tied to a receipt acknowledgement, prospective franchisees should carefully review the full franchise agreement and related schedules to understand all financial obligations. It would be prudent to directly ask the franchisor about any implicit or explicit minimum investment requirements beyond the initial and continuing fees outlined in these excerpts.