What fee does Exit charge if a franchisee signs up for training and fails to attend?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ining Course Manuals. Training times and instructors for each subject vary from program to program.
You must pay the travel, lodging, meals and incidental expenses of those attending the initial training program. Training is presently conducted at EXIT's Mississauga, Ontario headquarters, Atlanta, Georgia and/or online. It may also be conducted at a location selected by EXIT Realty Upper Midwest. See Franchise Agreement, Article 9. EXIT charges you $500, if you sign up and fail to attend the training or if you cancel on less than 30 days' notice. If you cancel in less than 10 days EXIT charges you $1,000. At the option of EXIT, some or all of the training may be online.
You and any individual who will serve as the administrator of your Franchise office must attend and complete the initial training program to EXIT Realty Upper Midwest and EXIT's satisfaction. Attendance must be at the next scheduled training following your execution of the Franchise Agreement. In addition, within 60 days after completion of the initial training, you must complete and attend the 1-day training course conducted by EXIT Realty Upper Midwest (if offered) at a location within the State of Iowa. There are no charges for the Iowa [insert your state] course or the materials. However, you are responsible for your own lodgi
Source: Item 11 — FRANCHISOR'S AND SUBFRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–24)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, if a franchisee signs up for the initial training program but fails to attend, Exit charges a fee of $500. This fee also applies if the franchisee cancels with less than 30 days' notice. If the cancellation occurs with less than 10 days' notice, the fee increases to $1,000.
This policy is important for prospective Exit franchisees to consider, as it highlights the financial implications of not attending scheduled training or canceling on short notice. The initial training program is mandatory for both the franchisee and the individual who will serve as the administrator of the franchise office. This training must be attended at the next scheduled session following the signing of the Franchise Agreement.
Franchisees should be aware of these cancellation fees and plan accordingly to avoid incurring these costs. It is common practice in the franchise industry to charge fees for missed training sessions or late cancellations to cover the costs associated with organizing and conducting the training. These fees ensure that franchisees are committed to attending the training and that the franchisor is compensated for any losses incurred due to no-shows or late cancellations.
Exit conducts its initial training programs a minimum of twice annually. The training program spans five full days and covers various subjects detailed in the Training Course Manuals. The training is currently conducted at Exit's headquarters in Mississauga, Ontario, Atlanta, Georgia, and/or online. It may also be conducted at a location selected by EXIT Realty Upper Midwest. Franchisees are also responsible for covering their own travel, lodging, meals, and incidental expenses related to attending the initial training program.