Is the Exit Formula required to form part of each Exit contract for all Exit Associates?
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.
16. Currency
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 must form part of each Exit contract for all Exit Associates. Furthermore, revisions to this formula must be provided to each Exit Associate in a timely manner.
This requirement ensures that all Exit Associates are aware of the fees and dues structure, as the Exit Formula outlines the system of fees and dues. This includes the MEMO fees outlined in Section 9.13 of the Franchise Agreement.
As a prospective franchisee, it is crucial to understand the Exit Formula and ensure that all Exit Associates, including sales representatives and non-licensed personnel under contract, receive the formula and any revisions promptly. This compliance is essential for maintaining transparency and adherence to Exit's operational standards.