What level of effort is required of the Exit franchisee, or its designated representative, in managing the franchise business?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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Information made available to Subfranchisor and EXIT as a result of the utilization of the software by Franchisee will not be published without written authorization by Franchisee and Sales Representatives where applicable.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. Accurately Report Associates
Franchisee shall promptly and accurately report and enter all EXIT Associates of Franchisee (as defined in the EXIT Formula) into EXIT's proprietary software program, MEMO, and ensure the EXIT Associate roster is up to date regularly.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees must actively manage their business, adhering to Exit's standards and utilizing their systems. The subfranchisor maintains reasonable supervision over the franchisee to ensure compliance with the Exit System and to provide guidance in managing and operating the franchisee's office. This indicates that Exit franchisees are expected to be actively involved in the day-to-day operations and management of their franchise.
Exit requires franchisees to use specific computer hardware and software, including proprietary software developed by Exit. Franchisees must also submit reports and records as specified in the Franchise Agreement, training manuals, and other communications from Exit and the subfranchisor. This includes cooperating with the ongoing development of Exit's computer-based information system, paying a monthly license fee (not to exceed $250, with a reduced fee for subsequent agreements under certain conditions), and maintaining records through this system. These requirements suggest that franchisees must dedicate time and effort to learning and using Exit's technology and reporting systems.
Franchisees are also responsible for maintaining written Sales Representative Agreements with their sales representatives, in a form approved by the subfranchisor or Exit. Additionally, franchisees play a key role in the 'Sponsoring' process, which involves recruiting new sales representatives into the Exit System. Franchisees control the hiring of sales representatives and are encouraged to develop a high-quality sales force. They can also receive a Sponsoring Bonus equal to 10% of the gross commissions generated by the recruit, up to a maximum of $10,000 per recruit per calendar year. This active role in recruitment and management of sales representatives further emphasizes the level of effort expected from Exit franchisees.