Where can I find the details of the Exit 'EXIT Formula'?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (F) EXIT Formula: "EXIT Formula" means the system of fees and dues described in Schedule 2 attached to this Agreement.
SCHEDULE 1
THE EXIT FORMULA
THE EXIT FORMULA
(U.S. Revision Effective-03.23.25)
It is understood that this EXIT Formula may not be changed or modified in any way without the prior express written permission of EXIT. EXIT reserves the right to modify this EXIT Formula and may increase the Annual Membership and fees up to 5% per year. If EXIT increases any amounts less than 5%, the unused portion may be carried over to subsequent years. Any modification shall become effective upon notice to all Subfranchisors and Franchisees. It shall be Franchisee's obligation to notify its Sales Representatives and employees of modifications in the EXIT Formula.
THIS FORMULA MUST FORM PART OF EACH EXIT CONTRACT FOR ALL EXIT ASSOCIATES AND REVISIONS TO THIS FORMULA MUST BE PROVIDED TO EACH EXIT ASSOCIATE IN A TIMELY MANNER.
SCHEDULE 2
SCHEDULE 3 DESCRIPTION OF PROTECTED TERRITORY
SCHEDULE 2 EXIT FORMULA
SALES REPRESENTATIVE PRORATED QUALIFICATION GUIDELINES
PERTAINING TO CLOSED COMMISSIONS GENERATED AND TRANSACTION FEES PAYABLE PER SALES REPRESENTATIVE
THE EXIT FORMULA
1. Franchisor
10. EXIT Part-time and Retirement Program
- a) All EXIT Associates are automatically eligible to receive Sponsoring Bonuses at the rate of 10% until December 31st of the year in which the EXIT Associate joins EXIT.
For those EXIT Associates who join after October 1st, the 10% eligibility will continue for the remainder of the calendar year in which the EXIT Associate joins EXIT, and for the entire calendar year following.
- b) If the EXIT Associate does not close a minimum of eight Transaction Sides or earn at least $40,000 in gross closed Commissions per calendar year (pro-rated in the first year and extended as noted in Section 10.a) above for those EXIT Associates who join after October 1st), the EXIT Associate shall be designated "part-time" for the following calendar year. (This minimum sales production does not apply to Franchisees or Subfranchisors.)
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the EXIT Formula, which outlines the system of fees and dues, is detailed in Schedule 2 attached to the Franchise Agreement. The EXIT Formula in Schedule 1, effective as of March 23, 2025, defines key roles such as Sales Representatives and EXIT Associates, and specifies the requirements for them.
The document emphasizes that the EXIT Formula must be part of every Exit contract for all EXIT Associates, and any revisions must be promptly communicated to them. The formula includes details regarding the franchisor's responsibilities, sales representative prorated qualification guidelines, and descriptions of protected territories.
Furthermore, the EXIT Formula dictates eligibility for sponsoring bonuses, including a 10% bonus for new EXIT Associates until December 31st of their joining year, with extensions for those joining after October 1st. It also outlines criteria for part-time status based on transaction sides or gross closed commissions, and conditions under which EXIT Associates can retire and still receive sponsoring bonuses.