What is the Exit Franchisee's obligation regarding modifications to the Exit Formula?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
It is understood that this EXIT Formula may not be changed or modified in any way without the prior express written permission of EXIT. EXIT reserves the right to modify this EXIT Formula and may increase the Annual Membership and fees up to 5% per year. If EXIT increases any amounts less than 5%, the unused portion may be carried over to subsequent years. Any modification shall become effective upon notice to all Subfranchisors and Franchisees. It shall be Franchisee's obligation to notify its Sales Representatives and employees of modifications in the EXIT Formula.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Exit Formula cannot be changed or modified by a franchisee in any way without prior express written permission from Exit. Exit retains the right to modify the Exit Formula and may increase the Annual Membership and fees up to 5% per year. If Exit increases any amounts less than 5%, the unused portion may be carried over to subsequent years. Any modification shall become effective upon notice to all Subfranchisors and Franchisees.
It is the franchisee's responsibility to inform their sales representatives and employees of any modifications to the Exit Formula. This ensures that all members of the Exit team are aware of the current policies, procedures, and fees associated with the franchise.
This requirement is fairly standard in franchising, as franchisors need to maintain consistency across all franchise locations to protect the brand and ensure quality control. Franchisees should pay close attention to any notices of modifications and promptly communicate them to their staff to avoid any confusion or non-compliance.