What is the maturity date range for Exit's notes?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company grants development rights to sub-franchisors within specific geographic regions. These sub-franchisors locate and secure franchisees that will open and operation EXIT Realty offices. Notes receivable represent balances due on the sale of Canadian and U.S. regions from sub-franchisors. The notes bear interest between 3.00% and 10.00%, mature between 2024 and 2033, and are secured by performance contracts in the franchisor agreements.
U.S.
Small Business Administration Note dated May 16, 2020 to alleviate economic injury 98,264 117,674 149,900 caused by disaster, payable in monthly installments of $731 from November 18, 2022 through November 2052.
New Summit Partners, LLC Unsecured note dated January 1, 2018 payable in a lump sum of $41,553 plus accrued interest on September 30, 2025.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the notes receivable mature between 2024 and 2033. These notes receivable represent balances due on the sale of Canadian and U.S. regions from sub-franchisors. These notes have interest rates between 3.00% and 10.00% and are secured by performance contracts in the franchisor agreements.
Additionally, a Small Business Administration Note is payable in monthly installments of $731 from November 18, 2022, through November 2052, with interest accruing at 3.75% per annum. There is also an unsecured note with New Summit Partners, LLC, dated January 1, 2018, payable in a lump sum of $41,553 plus accrued interest on September 30, 2025.
For a prospective Exit franchisee, this indicates that Exit has a range of financial instruments with varying maturity dates. Understanding the terms and conditions of these notes, especially those related to sub-franchisors, is crucial for assessing the financial health and stability of Exit and its related entities. Franchisees should seek clarification on the performance contracts securing the notes and the potential impact of these financial obligations on Exit's operations.