How is the first year's annual membership fee for Exit Associates calculated?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
4. Annual Membership
EXIT Formula (U.S. Version Rev. 03.23.25)
a) Each EXIT Associate shall pay to EXIT an Annual Membership of $425.00. The Annual Membership is non-refundable and is due and payable on the Effective Date of the Sales Representative's Agreement or the date the person becomes a part of the EXIT System, as applicable, and on each July 1st thereafter. The Annual Membership for the first year shall be prorated based on the number of days to the following July 1st.
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Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the annual membership fee for Exit Associates is $425.00. However, the membership fee for the first year is prorated based on the number of days remaining until the following July 1st. This means that an associate who joins Exit at the beginning of the year will pay the full $425.00, while someone who joins later in the year will pay a reduced amount.
This proration policy benefits new Exit Associates by reducing their initial financial commitment, especially if they join closer to the annual renewal date. It aligns their membership term with Exit's annual cycle, simplifying renewals and ensuring consistent benefits throughout the year.
For franchisees, understanding this proration is crucial for accurately collecting and remitting membership fees. They must calculate the prorated amount for each new associate to ensure correct payments and avoid discrepancies. This also means that the franchisee will need to keep track of when each associate joined to know when their renewal date is.