Can the Exit Formula be changed or modified without prior written permission from Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Exit Formula cannot be changed or modified in any way by a franchisee without prior express written permission from Exit. However, Exit retains the right to modify the Exit Formula. Exit can also 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 modifications to the Exit Formula made by Exit become effective upon notice to all Subfranchisors and Franchisees. It is the franchisee's responsibility to inform their Sales Representatives and employees of these modifications. This ensures that all members of the Exit organization are aware of and adhere to the current Exit Formula.
This requirement ensures uniformity and standardization across all Exit franchises, maintaining brand consistency and operational effectiveness. It also allows Exit to adapt its formula to changing market conditions and industry best practices, while ensuring that franchisees are kept informed of any changes that may affect their operations.