In the Exit FDD receipt, what information is a prospective franchisee expected to provide in the table?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
On the 15th day following each calendar quarter Franchisee shall provide Subfranchisor with MLS reports from each MLS of which the Franchisee is a member, showing current agent roster and all transactions closed within the previous calendar quarter.
Franchisee shall promptly and accurately report and enter all EXIT Associates of Franchisee (as defined in the EXIT Formula) into EXIT's proprietary software program, MEMO, and ensure the EXIT Associate roster is up to date regularly. Reporting shall occur when Sales Representatives are registered in the Multiple Listing Service ("MLS") system and when non licensed persons meet the qualification requirements outlined in the EXIT Formula.
Franchisee shall accurately report to Subfranchisor and EXIT, all transactions upon which Franchisee or its agents or sales representatives receive commission, including, by way of example and not limitation, rentals, leases and sales of land, commercial buildings, residential units, condominiums and mobile homes, and shall timely remit and pay transaction fees and other continuing fees due with respect to each transaction. Franchisee shall ensure that all sales representatives accurately report all such transactions to Franchisee and that all sales representatives who perform services with or through joint sales and marketing groups, or "teams," accurately report such activity, participation and their transactions in MEMO. Franchisee, or if Franchisee is an entity, all equity holders of Franchisee, must also ensure that all their transactions are accurately reported in MEMO and that all applicable fees, including but not limited to Company Development Fees, are paid. These payments are due immediately upon the finalization of each transaction.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are required to provide specific reports and information to the subfranchisor on a regular basis. Specifically, on the 15th day following each calendar quarter, the franchisee must provide the subfranchisor with MLS (Multiple Listing Service) reports from each MLS of which the franchisee is a member. These reports should include a current agent roster and all transactions closed within the previous calendar quarter.
In addition to quarterly MLS reports, Exit franchisees must also accurately report and enter all Exit Associates into Exit's proprietary software program, MEMO. This reporting should occur when sales representatives are registered in the MLS system and when non-licensed persons meet the qualification requirements outlined in the Exit Formula. Franchisees are also responsible for ensuring the Exit Associate roster is regularly kept up to date within the MEMO system.
Furthermore, Exit franchisees are obligated to accurately report all transactions upon which they or their agents/sales representatives receive a commission to both the subfranchisor and Exit. This includes various types of transactions such as rentals, leases, and sales of land, commercial buildings, residential units, condominiums, and mobile homes. Franchisees must also ensure that all sales representatives accurately report their transactions, including those performed through joint sales and marketing groups or "teams," in MEMO. All equity holders of the franchisee entity must also ensure their transactions are accurately reported in MEMO, and all applicable fees, including Company Development Fees, must be paid immediately upon the finalization of each transaction.
This detailed reporting ensures that Exit and its subfranchisors have a clear and up-to-date view of the franchisee's operations, agent activity, and financial performance. It also helps maintain the integrity and accuracy of the Exit system and ensures that all parties are compliant with the franchise agreement.