How much did Exit receive from regional rights disposed in 2022?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenue | $ 15,421,227 | $ 15,991,792 | $ 17,858,393 |
| Operating expenses | |||
| Advertising and promotion | 2,335,585 | 2,858,751 | 2,880,073 |
| Amortization and depreciation | 65,563 | 92,338 | 125,888 |
| Ancillary expenses | 155,129 | 159,378 | 209,692 |
| Credit loss (recovery) expense | 351,755 | 1,304,738 | 382,936 |
| Bank charges | 261,316 | 246,186 | 234,654 |
| Commissions | 68,380 | 198,365 | 111,540 |
| Contract services | 951,910 | 883,805 | 972,546 |
| Fees and dues | 27,450 | 30,231 | 33,494 |
| Information technology | 504,587 | 519,057 | 470,750 |
| Insurance | 158,867 | 146,300 | 97,700 |
| Office and general | 83,168 | 64,051 | 83,463 |
| Postage and delivery | 50,372 | 77,943 | 102,833 |
| Professional fees | 921,810 | 512,417 | 334,687 |
| Rent | 302,011 | 305,396 | 293,000 |
| Repairs and maintenance | - | 2,787 | 8,364 |
| Salaries and benefits | 7,692,843 | 7,205,125 | 7,900,241 |
| Telephone | 18,920 | 25,306 | 26,585 |
| Trade shows and conventions | 1,778,283 | 2,020,763 | 2,845,425 |
| Training and development | 712,731 | 1,078,879 | 1,452,332 |
| Travel | 87,949 | 147,007 | 136,233 |
| Vehicles | 7,335 | 5,902 | 7,405 |
| Miscellaneous | 36,710 | - | - |
| Total operating expenses | 16,572,674 | 17,884,725 | 18,709,841 |
| Loss from operations | (1,151,447) | (1,892,933) | (851,448) |
| Other income (expense) | |||
| Gain on sale of property and equipment | 2,125,033 | - | 20,291 |
| Impairment of digital assets | - | - | (1,820,185) |
| Legal settlement | (1,500,000) | - | - |
| Interest | 137,304 | 78,187 | 170,816 |
| Total other income (expense) | 762,337 | 78,187 | (1,629,078) |
| Loss before provision for income taxes and non-controlling | |||
| interests | (389,110) | (1,814,746) | (2,480,526) |
| Benefit for income taxes | (459,827) | (486,997) | (342,266) |
| Consolidated net income (loss) | 70,717 | (1,327,749) | (2,138,260) |
| Noncontrolling interest in subsidiary's loss | 616 | 463 | 691 |
| Net income (loss) before foreign currency translation gain (loss) |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, in 2022, Exit received $975,000 from regional rights disposed. This figure is part of the cash flow from operating activities reported in the FDD.
This information is relevant to potential franchisees as it provides insight into Exit's financial transactions related to its regional rights. The disposal of regional rights could indicate a strategic shift or restructuring within the company.
Understanding the context behind this income, such as the reasons for disposing of regional rights, could be crucial for assessing the stability and future direction of the Exit franchise system. It is important to note that this is a one-time event and may not be indicative of ongoing revenue streams.