If Exit increases any amounts less than 5%, what happens to the unused portion?

According to Exit's 2025 Franchise Disclosure Document, Exit reserves 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 shall be Franchisee's obligation to notify its Sales Representatives and employees of modifications in the Exit Formula.

This means that Exit has the flexibility to adjust annual membership fees, but they are limited to a maximum increase of 5% each year. If Exit chooses to increase the fees by an amount less than 5%, the remaining percentage can be saved and potentially used for future increases. This provides Exit with some leeway in managing fee adjustments over time.

For a prospective Exit franchisee, this policy offers a degree of predictability regarding potential fee increases. While Exit can raise fees annually, the 5% cap provides a limit. The ability to carry over unused portions of the potential increase gives Exit the option to implement larger increases in later years, but franchisees will receive notice of any modifications.