Where in the Exit Franchise Agreement can I find information about the initial fee?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
6. INITIAL FEE
Upon the execution of this Agreement, Franchisee shall pay Subfranchisor, by cashier's check or wire transfer, an initial fee in the amount of [insert franchise price] (hereinafter "Initial Fee"). The Initial Fee shall be fully earned by Subfranchisor upon the execution of this Agreement, and no portion of the Initial Fee shall be refundable. The grant of this franchise and the payment of the Initial Fee provide Franchisee no rights regarding such other licenses, franchises or additions to the Protected Territory. No rights or privileges under this Agreement shall exist until the Initial Fee is paid.
7. CONTINUING FEES
7.1. EXIT Formula.
In addition to the Initial Fee, Franchisee, during the term of this Agreement and any extensions or renewal terms, shall pay Continuing Fees in accordance with the EXIT Formula (as incorporated in Section 19), which amounts shall be collected and paid to Subfranchisor or EXIT according to the EXIT Formula and as directed by Subfranchisor or EXIT, according to the Subfranchise Agreement between them. Continuing Fees shall be paid by electronic bank transfer or by such means as Subfranchisor and EXIT may direct.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, details regarding the initial franchise fee can be found in Section 6 of Item 23, titled "Receipts," within the Franchise Agreement. Upon signing the agreement, the franchisee is required to pay Exit's subfranchisor an initial fee, the specific amount of which is to be inserted in the agreement.
This initial fee is considered fully earned by the subfranchisor once the agreement is executed, and it is non-refundable. The payment of this fee grants the franchisee the rights and privileges outlined in the agreement, but it does not provide any rights related to other licenses, franchises, or additions to the protected territory. The agreement explicitly states that no rights or privileges are in effect until the initial fee is paid in full.
In addition to the initial fee, franchisees are also responsible for ongoing fees throughout the term of the agreement, including any extensions or renewals. These continuing fees are determined by the "EXIT Formula," as detailed in Section 19 of the agreement. The amounts are collected and paid according to this formula, as directed by the subfranchisor or Exit. These continuing fees are to be paid via electronic bank transfer or other methods specified by Exit and the subfranchisor.