Are all Exit franchisees required to contribute Advertising Funds at the same rate?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
All Franchisees are required to contribute Advertising Funds at the same rate. Each of the Funds and an accounting of advertising expenditures is administered by EXIT. The Funds are not audited.
Annual financial statements and an accounting of the Funds will be sent to you via email or U.S. mail upon your written request sent to EXIT via email to snanan@exitrealty.com, or U.S. mail to EXIT Realty Corp. International, Attention: Steve Nanan, 2626 Argentia Road, Mississauga, Ontario, Canada, L5N 5N2.
Any Fund amount remaining at the end of a calendar year is carried over to be used in the future.
In the most recently concluded calendar year, EXIT spent 11.87% of the Funds on production, 2.01% of the Funds on media placement, 0% of the Funds on administrative expenses, 57.5% of the Funds on EXIT's website and internet marketing, 16.43% of the Funds on promotions and 40.51% of the Funds for regional development.
Source: Item 11 — FRANCHISOR'S AND SUBFRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–24)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, all franchisees are required to contribute to the Advertising Funds at the same rate. These funds encompass the United States Promotional Fund, used for advertising across various media such as radio, television, internet, and newspapers, and the Regional Development Fund, which is dedicated to purchasing advertising services within the specific region where the fees are generated.
Exit retains control over how these advertising funds are spent and is not obligated to allocate specific amounts to any particular area or region, with the exception of the Regional Development Fund, which must be used for regional development in the region where the funds originated. The FDD specifies that Exit is not required to maintain the money paid by Franchisees to the Funds and income earned by the Funds in separate accounts. Furthermore, the funds are not audited, though annual financial statements and an accounting of the Funds will be sent to you via email or U.S. mail upon written request.
In the most recently concluded calendar year, Exit allocated the advertising funds as follows: 11.87% to production, 2.01% to media placement, 0% to administrative expenses, 57.5% to Exit's website and internet marketing, 16.43% to promotions, and 40.51% for regional development. This distribution illustrates how Exit prioritizes different advertising channels and activities. Any remaining funds at the end of the year are carried over for future use. Prospective franchisees should note that there is no advertising council composed of franchisees to advise Exit on advertising policies, and the Franchise Agreement does not grant franchisees the power to form, change, or dissolve such a council.