When did Exit make the initial installment payment of $2,500 as part of the settlement for the Telephone Consumer Protection Act class action lawsuit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
bleased to an unrelated third party under a cancelable lease agreement that began on June 14, 2023, expired on October 14, 2023, and continued monthly until the lease was cancelled in April 2024.
A portion of the leased space is subleased to an unrelated third party under a cancelable lease agreement that began on September 1, 2024, and expires on September 1, 2025.
A portion of the leased space is subleased to an unrelated party under a noncancelable lease agreement that began on October 1, 2024, and expires o
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit was the defendant in a class action lawsuit regarding the Telephone Consumer Protection Act, which began on August 21, 2019. In 2020, Exit settled the claim with the plaintiff for $15,000.
The settlement terms required Exit to make an initial installment payment of $2,500 in May 2020. Following this initial payment, Exit was obligated to make monthly installment payments of $500 until the full settlement amount was paid.
At the end of December 31, 2022, the remaining balance of the settlement, which was included in accounts payable, was $3,000. This remaining balance was fully paid during the year ended December 31, 2022.