Does the Exit FDD receipt acknowledgement trigger any fees or payments?
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.
7.2. Interest, Late Charges and Overdue Amounts
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
Based on the 2025 Exit Franchise Disclosure Document, the acknowledgement of receipts itself does not trigger any specific fees or payments. However, the FDD outlines various fees and payments associated with other aspects of the franchise system. For instance, franchisees must pay an initial fee upon execution of the agreement, and continuing fees during the term of the agreement. These continuing fees are collected and paid according to the EXIT Formula.
Additionally, the FDD mentions fees related to Sponsoring Bonuses. Each Sponsoring Bonus is subject to a Sponsoring Bonus Fee of 10% of the Sponsoring Bonus per Transaction Side, up to a maximum of $75 per Transaction Side. An additional administration fee of $35 is deducted from each Sponsoring Bonus prior to disbursement in the event of the death of the sponsor. These fees are deducted by EXIT before the Sponsoring Bonus is paid out.
Furthermore, Exit associates who have been in the EXIT system for 5 years or longer and have paid their Annual Membership dues continuously are eligible for a loyalty discount on their Annual Membership. The discount is calculated in 5-year increments of 5% each. For example, an associate who has been with EXIT for over 5 years but less than 10 years will receive a 5% discount of $21.25. Any amount not paid by the seventh (7th) day after its due date shall be charged a late fee of $50.