What was the franchise commission revenue for Exit in 2024?
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 2024 was $396,513. This figure represents the income Exit received from commissions, which are calculated as a percentage of net sales earned by its franchisees. This is a key revenue stream for Exit, reflecting the overall sales performance of its franchise network.
Franchise commission revenue is an important indicator of the health and activity of Exit's franchise system. A higher commission revenue generally suggests stronger sales performance across the franchise network, while a lower figure might indicate challenges in sales or franchisee performance. Prospective franchisees should consider this trend when evaluating the potential profitability and stability of an Exit franchise.
It's also worth noting that Exit recognizes revenue from commissions in the period when the franchisee earns the revenue, assuming collectability from the customer is reasonably assured. This accounting practice aligns revenue recognition with the actual sales performance of the franchisees, providing a clear picture of Exit's financial performance based on its franchisees' success.