Where can I find information about the Exit Formula in this document?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to the definitions set forth throughout this Agreement, the words and phrases set forth below shall have the following meanings:
(D) Continuing Fees: "Continuing Fees" means the fees and dues paid by Franchisee pursuant to the EXIT Formula including the MEMO fees outlined in Section 9.13 of the Franchise Agreement.
(F) EXIT Formula: "EXIT Formula" means the system of fees and dues described in Schedule 2 attached to this Agreement.
See Schedule 2 attached to and incorporated in this Agreement.
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.
Except as provided in Section 9.k) above, all amounts described in the EXIT Formula are in U.S. Dollars.
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.
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 pertains to the system of fees and dues, is described in Schedule 2 of the Franchise Agreement. Item 19 of the agreement also references Schedule 2 as the location for details regarding the Exit Formula. Additionally, the document defines "Continuing Fees" as the fees and dues paid by the franchisee according to the Exit Formula, including MEMO fees outlined in Section 9.13 of the Franchise Agreement.
Furthermore, the document states that the Exit Formula may not be changed or modified without prior written permission from Exit, and Exit reserves the right to modify the formula and increase annual membership and fees up to 5% per year. Any modifications become effective upon notice to all subfranchisors and franchisees, and it is the franchisee's obligation to notify their sales representatives and employees of these changes. All amounts described in the Exit Formula are in U.S. Dollars, except as provided in Section 9.k).
Finally, the document emphasizes that the Exit Formula must form part of each Exit contract for all Exit Associates, and revisions to the formula must be provided to each Exit Associate in a timely manner. The table of contents also references the Exit Formula on page 107, along with related topics such as the business model and the 10/7/5 plan, which are discussed on subsequent pages.