What was the initial franchise fee revenue for Exit in 2024?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| Years Ended December 31 | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Franchise revenues: | ||||
| Initial franchise fees | $ 90,956 | $ 104,355 | $ 107,263 | |
| Franchise commission | 396,513 | 575,252 | 748,794 | |
| Assignment income | 15,132 | 11,181 | 10,282 | |
| Total franchise revenues | $ 502,601 | $ 690,788 | $ 866,339 |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the initial franchise fee revenue for the year 2024 was $90,956. This figure represents the revenue recognized from initial fees paid by new franchisees joining the Exit system during that year. It's important to note that this is the revenue recognized, which may differ from the total initial fees collected due to accounting practices that recognize revenue over the term of the franchise agreement.
In addition to initial franchise fees, Exit also generates revenue from other sources such as franchise commissions and assignment income. In 2024, franchise commissions amounted to $396,513, and assignment income was $15,132. These revenues, combined with the initial franchise fees, contributed to a total franchise revenue of $502,601 for Exit in 2024.
It is important for a prospective franchisee to understand how these different revenue streams contribute to Exit's overall financial health. The initial franchise fee is a one-time payment, while commissions and assignment income are ongoing revenues that depend on the performance of the franchisees and the transfer of franchise rights. Understanding the trends and amounts of these revenue streams can provide insights into the stability and growth potential of the Exit franchise system.
Furthermore, the FDD also provides information on deferred revenues related to initial franchise fees. Deferred revenue represents the portion of initial fees that have been collected but not yet recognized as revenue. The changes in deferred revenue, including additions for initial franchise fees received and reductions for revenue recognized, can provide a more complete picture of Exit's financial performance and future revenue potential.