What is the Exit franchisee and its equity holders required to complete as EXIT Associates?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (D) Franchisee, or if Franchisee is an entity, all equity holders of the entity, shall become EXIT Associates and complete the EXIT Associate Profile, attached as Schedule 5 to this agreement. If Franchisee or any of its equity holders were "sponsored" into the EXIT System, prior to buying this Franchise, that Sponsorship will not change. If Franchisee or any of its equity holders were not sponsored into the EXIT System prior to purchasing this Franchise, those persons will be named as their own Sponsor. If a "self-sponsored" equity holder of the Franchisee terminates its equity holder relationship with the Franchisee, but stays in the EXIT System, the Sponsorship of that equity holder shall be transferred to the Subfranchisor.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the franchisee and all equity holders of the entity must become Exit Associates and complete the Exit Associate Profile, which is attached as Schedule 5 to the agreement. If the franchisee or any of its equity holders were sponsored into the Exit System before buying the franchise, that sponsorship will not change. If they were not sponsored prior to purchasing the franchise, they will be named as their own sponsor.
If a self-sponsored equity holder of the franchisee terminates their equity holder relationship with the franchisee but remains in the Exit System, the sponsorship of that equity holder will be transferred to the subfranchisor. This requirement ensures that all individuals involved in the ownership and operation of the Exit franchise are integrated into the Exit System and adhere to its standards.
This requirement is fairly standard in the franchise industry, as franchisors typically want to ensure that all owners and operators of the franchise are fully trained and compliant with the franchise system. By requiring the franchisee and all equity holders to become Exit Associates and complete the Exit Associate Profile, Exit can ensure that all individuals involved in the franchise are knowledgeable about the Exit System and committed to its success.