What is the monthly licensing fee for the MEMO software payable to Exit?
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.
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 must pay a monthly licensing fee for the MEMO software. The current licensing fee is $250.00 per month, payable to Exit. This fee is collected through automatic monthly withdrawals. The MEMO software is owned and maintained by Exit, which also has independent access to the data generated and stored within the system.
The MEMO software is designed to calculate and store transaction fees, regional development fees, and company development fees for each transaction completed by the franchise. It also tracks franchise contract details and information about sales representatives, including commission plans and commission levels. The system also tracks listings, both pending and sold. However, it does not track other operating expenses such as office rent or utility expenses.
Prospective franchisees should consider the ongoing cost of the MEMO software when evaluating the overall financial investment required to operate an Exit franchise. They should also inquire about any potential future increases in the licensing fee and the frequency of software updates or upgrades that may require additional hardware or software investments.