What is the monetary fund amount for the settlement of legal claims related to alleged antitrust violations by a wholly owned subsidiary of Exit?
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)
The 2025 FDD for Exit does not contain information regarding the monetary fund amount for the settlement of legal claims related to alleged antitrust violations by a wholly-owned subsidiary. The document does reference a settlement of $15,000 related to a Telephone Consumer Protection Act lawsuit.
The FDD includes details about a class action lawsuit seeking damages under the Telephone Consumer Protection Act where Exit was the defendant. In 2020, Exit settled the claim with the plaintiff for $15,000. The settlement terms involved an initial payment of $2,500 in May 2020, followed by monthly installments of $500 until the full amount was paid. The remaining balance as of December 31, 2022, was $3,000, which was subsequently paid in full during that year.
Prospective franchisees should be aware of Exit's past legal settlements and consider requesting additional information from the franchisor about any potential legal liabilities, including those related to antitrust violations by subsidiaries, to fully understand the financial risks associated with investing in an Exit franchise.