What is the 'Exit Formula' and where is it described in relation to the Exit Franchise Agreement?

According to Exit's 2025 Franchise Disclosure Document, the 'Exit Formula' is defined as the system of fees and dues that franchisees pay. This formula is detailed in Schedule 2, which is attached to the Exit Franchise Agreement.

Schedule 2, titled 'Exit Formula,' outlines the specifics of this system. It includes information regarding Exit Realty Corp. International's role as the franchisor, the definitions of sales representatives and Exit Associates, and the effective dates for these associates. Understanding the Exit Formula is crucial for prospective franchisees as it dictates the ongoing financial obligations to the franchisor throughout the term of the franchise agreement.

Specifically, the Exit Formula dictates how continuing fees are calculated and paid, as stated in section 7.1 of the franchise agreement. These fees are collected and paid to the subfranchisor or Exit, as directed, according to the subfranchise agreement between them. Franchisees must pay these continuing fees, in addition to the initial franchise fee, during the term of the agreement and any extensions or renewals.