What are Exit franchisees responsible for regarding the annual membership fees of Exit Associates?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
- b) Loyalty Discount Each EXIT Associate who at the time of membership renewal has been in the EXIT system for 5 years or longer (paid Annual Membership dues for 5 continuous years or longer) will receive a loyalty discount toward his/her Annual Membership. The discounts are calculated in 5-year increments of 5% each. For example:
- i) Over 5 years but less than 10 years with EXIT, Associate will receive a 5% discount of $21.25;
- ii) Over 10 years but less than 15 years with EXIT, Associate will receive a 10% discount of $42.50;
- iii) Over 15 years but less than 20 years with EXIT, Associate will receive a 15% discount of $63.75;
- iv) Over 20 years but less than 25 years with EXIT, Associate will receive a 20% discount of $85.00.
- v) Over 25 years but less than 30 years with EXIT, Associate will receive a 25% discount of $106.25.
This loyalty discount will continue for each 5-year increment Associate is with EXIT.
- c) The payment of the Annual Membership is an absolute prerequisite for the receiving of any and all EXIT Sponsoring Bonuses, Retirement Benefits and awards and to ensure a presence on the EXIT website as well as access to EXIT resources. The Franchisor reserves the right to deduct the Annual Membership from said payments whenever necessary.
- d) Franchises are responsible for the payment and collection of the Annual Membership from EXIT Associates. Franchise shall pay the Annual Membership to EXIT immediately upon the date that the new Sales Representative or EXIT Associate Agreement is signed and upon the annual renewal date of July 1st. Payment shall be by electronic funds transfer or by Franchise's check. Annual Membership payable on the July 1st renewal date may also be paid online directly by EXIT associates by VISA® or MasterCard®. Personal checks will not be accepted.
- e) Any amount not paid by the seventh (7th) day after its due date shall be charged a late fee of $50.
5. Commissions
Commission is defined as all revenues received through the Franchise from its Sales Representatives' activities ("Commissions").
The standard Commission structure for a Sales Representative is as follows:
[Item 23: RECEIPT]
4. Annual Membership
EXIT Formula (U.S. Version Rev. 03.23.25)
a) Each EXIT Associate shall pay to EXIT an Annual Membership of $425.00. The Annual Membership is non-refundable and is due and payable on the Effective Date of the Sales Representative's Agreement or the date the person becomes a part of the EXIT System, as applicable, and on each July 1st thereafter. The Annual Membership for the first year shall be prorated based on the number of days to the following July 1st.
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[Item 23: RECEIPT]
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, franchisees are responsible for the payment and collection of the annual membership fees from their Exit Associates. The franchisee must pay Exit the annual membership fee immediately upon the signing of the new Sales Representative or Exit Associate Agreement, and then annually on the renewal date of July 1st. Payment to Exit must be made via electronic funds transfer or by the franchisee's check. However, Exit Associates can also pay their annual membership fees directly online using VISA® or MasterCard®. Personal checks are not accepted.
The annual membership fee for each Exit Associate is $425.00. This fee is non-refundable and is due on the effective date of the Sales Representative's Agreement or the date the person becomes part of the Exit System, and annually on July 1st thereafter. The annual membership fee for the first year is prorated based on the number of days remaining until the following July 1st.
Exit also offers loyalty discounts to Exit Associates who have been in the Exit system for 5 years or longer, with discounts increasing in 5-year increments. For example, an associate who has been with Exit for over 5 years but less than 10 years will receive a 5% discount of $21.25. These discounts continue to increase for each 5-year increment. It is important to note that payment of the annual membership fee is a prerequisite for receiving any Exit Sponsoring Bonuses, Retirement Benefits, and awards, as well as ensuring a presence on the Exit website and access to Exit resources. Exit reserves the right to deduct the annual membership fee from these payments if necessary.
If the annual membership fee is not paid within seven days of the due date, a late fee of $50 will be charged. Furthermore, Exit retains the right to modify the Exit Formula, including increasing the annual membership and fees by up to 5% per year. Franchisees are obligated to notify their Sales Representatives and employees of any modifications to the Exit Formula.