factual

What happens to any Fund amount remaining at the end of a calendar year for Exit?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

Any Fund amount remaining at the end of a calendar year is carried over to be used in the future.

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, any amount remaining in the advertising funds at the end of a calendar year is carried over for use in future advertising initiatives. This means that unspent advertising fees contributed by franchisees are not lost but are retained for subsequent advertising and promotional activities. This policy applies to the United States Promotional Fund and the Regional Development Fund.

This carry-over policy benefits franchisees by ensuring that all contributions to the advertising funds are ultimately used for their intended purpose: to increase awareness and visibility of the Exit brand and system. It also provides Exit with flexibility in planning and executing advertising campaigns, as they are not forced to spend all funds within a specific year. This can lead to more strategic and effective use of advertising resources.

It is important to note that Exit is not required to maintain the money paid by franchisees to the Funds and income earned by the Funds in separate accounts. Also, the Funds are not audited. Franchisees can request annual financial statements and an accounting of the Funds by written request to Exit.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.