How much did Exit receive in renewal fees in 2022?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31 | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Deferred revenues – beginning of year | $ 253,796 | $ 317,558 | $ 308,853 | |
| Additions for initial franchise fees received | 40,000 | 33,750 | 80,000 | |
| Additions for renewal fees received | 25,750 | 19,500 | 28,250 | |
| Additions for assignment fees received | 10,750 | 8,625 | 18,000 | |
| Reduction for amounts deemed uncollectible | - | (10,100) | - | |
| Revenue recognized during the year | (106,088) | (115,536) | (117,545) | |
| Deferred revenues – end of year | $ 224,208 | $ 253,796 | $ 317,558 |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the company received $28,250 in renewal fees during the year 2022. This figure represents the total amount of renewal fees Exit collected from its franchisees throughout that year.
For a prospective franchisee, this indicates the level of revenue Exit generates from existing franchisees renewing their agreements. It can be used to evaluate the stability and continued interest in the Exit franchise system. A consistent or growing trend in renewal fees might suggest that franchisees find value in the Exit brand and are likely to continue their association.
It's important to note that this is just one component of Exit's overall revenue. The FDD also lists revenue from initial franchise fees and assignment fees. Reviewing these different revenue streams can provide a more comprehensive understanding of Exit's financial health and business model.