What is the Franchise's obligation regarding Business Information transmission to Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ng this course is that the Franchisee must have first attended the Franchise Management Training Course. It is recommended that this Advanced Broker Course be attended at least once during the five year term of the Franchise Agreement.
9.12. Sales Representative Agreements
Franchisee shall at all times maintain a written Sales Representative Agreement between Franchisee and each of its Sales Representatives; which Agreement shall be in a form approved by Subfranchisor or EXIT. Franchisee shall provide the Subfranchisor and Franchisor with the version of the Sales Representative Agreement that they are using within their office.
9.13. Computer Information Systems
Franchisee shall utilize computer hardware and software as required by EXIT, including such proprietary computer software as EXIT may develop for use in connection with the EXIT System. Franchisee shall submit to EXIT and Subfranchisor such forms, reports, and records as specified and at the times indicated in this Agreement, in the Training Manuals and in other written communications from EXIT and Subfranchisor. EXIT has developed and implemented a computer based information system for purposes of maintaining a uniform electronic database of franchisee profiles, books and records. Franchisee agrees to co-operate in the ongoing development of this system, to pay a license fee not to exceed two hundred and fifty dollars ($250.00) per month related to computer software, to maintain records through this system, and to file and receive reports electronically to and from EXIT and Subfranchisor as may be required by the System. This monthly fee is to be paid through automatic monthly withdrawal. If Franchisee owns more than one (1) EXIT Franchise Agreement, and those Agreements are operated by the same legal entity and use the same trade name, the monthly computer software license fee for the second and
subsequent Franchise Agreements shall be reduced to twenty-five percent (25%) of the monthly license fee charged as of the date that the subsequent Franchise Agreement(s) is signed.
Franchisee acknowledges that Subfranchisor has not developed the software to be provided by EXIT to Franchisee. Subfranchisor does not provide upgrades, new versions, fixes or patches of the software provided by EXIT. Subfranchisor makes no representations or warranties concerning the structure, performance of the software provided by EXIT or the suitability of the software provided by EXIT for use in Franchisee's business.
Information made available to Subfranchisor and EXIT as a result of the utilization of the software by Franchisee will not be published without written authorization by Franchisee and Sales Representatives where applicable.
9.14. Representations and Warranties
Franchisee represents and warrants that Franchisee and its officers, directors and shareholders have been duly authorized to enter into this Agreement and that the execution and performance of this Agreement is not in violation or breach, or cause the violation or breach, of any agreement or covenant between them and any of them and any third party or the violation or breach of any order, decree or judgment of any court or administrative agency.
**9.15.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees have several obligations regarding the transmission and management of business information. Exit franchisees must use computer hardware and software as required by Exit, including any proprietary software that Exit develops for use in the Exit system. Franchisees must also submit specified forms, reports, and records to Exit and the Subfranchisor as indicated in the Franchise Agreement, training manuals, and other written communications.
Exit has implemented a computer-based information system to maintain a uniform electronic database of franchisee profiles, books, and records. Franchisees must cooperate in the ongoing development of this system, pay a license fee not exceeding $250 per month for the computer software, maintain records through this system, and electronically file and receive reports to and from Exit and the Subfranchisor as required by the system. This monthly fee is paid through automatic monthly withdrawal. If a franchisee owns more than one Exit franchise agreement operated by the same legal entity and using the same trade name, the monthly computer software license fee for the second and subsequent franchise agreements is reduced to 25% of the monthly license fee charged as of the date the subsequent franchise agreement(s) is signed.
Additionally, upon termination or non-renewal of the franchise agreement, the franchisee must keep the Subfranchisor advised of their current business and residence address and telephone numbers for three years, as well as the business address and phone number of their employer, if any. Franchisees are also obligated to close all transactions under contract at the time of termination through Exit's proprietary system "MEMO" and pay all company development fees, transaction fees, and regional development fees that are due. Franchisees must also provide the Subfranchisor and Franchisor with the version of the Sales Representative Agreement that they are using within their office.