What was the franchise commission revenue for Exit in 2022?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended December 31 | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Franchise revenues: | ||||
| Initial franchise fees | $ 90,956 | $ 104,355 | $ 107,263 | |
| Franchise commission | 396,513 | 575,252 | 748,794 | |
| Assignment income | 15,132 | 11,181 | 10,282 | |
| Total franchise revenues | $ 502,601 | $ 690,788 | $ 866,339 |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the franchise commission revenue for the year 2022 was $748,794. This figure represents the income Exit received from commissions, which are calculated as a percentage of net sales earned by its franchisees. This revenue is recognized in the period when the franchisee earns the revenue and collectability is reasonably assured.
Franchise commission revenue is a key indicator of the overall performance and sales success of Exit franchisees. Higher commission revenues generally suggest that franchisees are performing well and generating substantial sales. For prospective franchisees, this number can be an important benchmark when evaluating the potential profitability and market demand for an Exit franchise. It reflects the brand's ability to generate sales through its franchisees.
It's important to note that this figure represents only the franchise commission revenue and does not include other revenue streams such as initial franchise fees or assignment income. A prospective franchisee should consider the total revenue picture, including all revenue streams, to get a comprehensive understanding of Exit's financial performance. Understanding the different revenue streams and how they contribute to the overall financial health of the franchisor is crucial for making an informed investment decision.
In addition to franchise commission revenue, Exit also generates revenue from initial franchise fees, assignment income, and other sources. In 2022, initial franchise fees amounted to $107,263, and assignment income was $10,282. The total franchise revenues for 2022 amounted to $866,339. These figures provide additional context for understanding the overall revenue composition of Exit and can help prospective franchisees assess the relative importance of different revenue streams.