How much does an Exit franchisee contribute to the U.S. Creative Fund if they pay a $150 fee?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Revenue**
All Commissions are to be entered into MEMO and will be subject to transaction fees unless the gross revenue is $250.00 or less.
e) Payment
Transaction Fees are payable by Franchise to Subfranchise and EXIT. Transaction Fees are payable at the finalization of the Transaction Side and are deducted from the Sales Representative's portion of the Commission.
3
A portion of each Transaction Fee is allocated as follows:
| Initial | |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, when an Exit franchisee pays a $150 fee, $5.00 is allocated to the U.S. Creative Fund. This fund is administered by Exit and is used to create concepts and programming for national and local advertising. Exit uses this fund to compensate its employees and subcontractors for providing advertising services.
The U.S. Creative Fund is one of several funds that Exit deposits fees into, including the United States Charitable Fund, United States Advertising Fund, Regional Development Fund, and Administrative Fund. It's important to note that none of these funds are audited, and Exit has sole discretion over all deposits to and expenditures from these funds. This means Exit is not obligated to spend any specific amount on advertising or promotion in any particular area or region.
For a prospective Exit franchisee, this means that a portion of the fees they pay will contribute to the U.S. Creative Fund, which supports advertising efforts. However, franchisees should be aware that Exit has complete control over how these funds are used, and there is no guarantee that the advertising will directly benefit their specific location or region. Franchisees should consider this when evaluating the overall value and potential return on investment of the franchise.