How is the monthly licensing fee for the Exit MEMO software paid?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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The software provided by EXIT for the Franchise Report System (MEMO) is owned by EXIT and licensed by EXIT to you. EXIT maintains and updates MEMO. EXIT will have independent access to the information generated or stored on MEMO. The initial cost of the MEMO software is $0. Currently, a licensing fee of $250.00 per month for MEMO, payable to EXIT, is charged to you. This fee is to be paid by automatic monthly withdrawal. See Section 9.14 of the Franchise Agreement and ITEM 6 and ITEM 8 of this Disclosure Document.
EXIT may require you to upgrade the hardware and software to maintain compatibility with MEMO.
MEMO calculates and stores the Transaction Fees, Regional Development Fees and Company Development Fees for each transaction performed by your Franchise. The MEMO System tracks all information pertaining to Franchise contract details, as well as information about each of your Sales Representatives. It provides the ability to set commission plans which automatically calculate the commission of every transaction in which a salesperson is involved. It tracks when Sales Representatives cap out on EXIT
Transaction Fees and reach the next commission level. It keeps track of all listings, both pending and sold. It does not track other operating expenses not directly re
Source: Item 11 — FRANCHISOR'S AND SUBFRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–24)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are charged a $250 monthly licensing fee for the MEMO software. This fee is payable to Exit and is collected through automatic monthly withdrawal. The MEMO software is used to calculate and store transaction fees, regional development fees, and company development fees for each transaction performed by the Exit franchise. It also tracks franchise contract details and information about sales representatives, including commission plans and sales performance.
Exit maintains and updates the MEMO software and has independent access to the information generated or stored within it. Franchisees may be required to upgrade their hardware and software to maintain compatibility with MEMO as technology advances and Exit implements upgrades. The FDD also references Section 9.14 of the Franchise Agreement and Items 6 and 8 of the Disclosure Document for further details regarding the MEMO software and associated fees.
For a prospective Exit franchisee, this means budgeting $250 per month for the MEMO software license. The automatic withdrawal payment method ensures consistent and timely payment, but franchisees should ensure they have sufficient funds available to avoid any issues with the withdrawals. Understanding the capabilities of the MEMO software is also crucial, as it plays a significant role in tracking financial and sales-related data for the franchise. Franchisees should also be prepared for potential hardware and software upgrades to maintain compatibility with the system.