When must an Exit franchisee pay the renewal fee?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (E) Franchisee shall pay to Subfranchisor, on or before the first (1st) day of the Renewal Term, a Renewal Fee of ten percent (10%) of the then current Initial Franchise Fee for your size franchise territory (not to exceed 25% of the Initial Franchise fee paid) for a five (5) year term renewal or a Renewal Fee of fifteen percent (15%) of the then current Initial Fee for your size franchise territory (not to exceed 37.5% of the Initial Fee paid) for a ten (10) year term renewal; and
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a franchisee must pay the renewal fee on or before the first day of the renewal term. To renew the franchise agreement for an additional five or ten-year term, the franchisee must satisfy several conditions.
Specifically, the franchisee must be in compliance with the existing agreement's terms and Exit's standards, provide written notice of intent to renew at least six months before the current term ends, execute the then-current franchise agreement, and ensure all financial obligations to Exit and the subfranchisor are settled.
Furthermore, the franchisee is required to attend the renewal training programs provided by Exit and the subfranchisor. The renewal fee itself is calculated as a percentage of the then-current initial franchise fee, with 10% for a five-year renewal and 15% for a ten-year renewal, subject to caps of 25% and 37.5% of the initial fee paid, respectively.