What are the names of the advertising funds to which Exit allocates advertising fees?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
From the fees generated from each sale or lease transaction, a portion of the fees is allocated to advertising and to other funds. See ITEM 6 of this Disclosure Document and Section 7.6 of the Franchise Agreement.
Advertising. The advertising fees are allocated to the following Advertising Funds (the "Funds"): United States Creative Fund, United States Promotional Fund and Regional Development Fund.
The United States Creative Fund is used to create concepts and programming used for national and local advertising of EXIT. EXIT uses the creative fund to pay its employees and subcontractors for the advertising services that it provides.
The United States Promotional Fund is used to advertise and promote in radio, television, internet, newspaper, trade magazines and other advertising and promotion mediums.
The Regional Development Fund is used to purchase advertising services within the Region within which the Regional Development Fund fees are generated.
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, a portion of the fees generated from each sale or lease transaction is allocated to advertising and other funds. Specifically, Exit allocates advertising fees to three distinct advertising funds: the United States Creative Fund, the United States Promotional Fund, and the Regional Development Fund. These funds serve different purposes in Exit's advertising strategy.
The United States Creative Fund is designated for creating advertising concepts and programming used for both national and local advertising efforts. Exit uses this fund to compensate its employees and subcontractors who provide advertising services. The United States Promotional Fund is used for advertising and promotion across various mediums, including radio, television, internet, newspapers, and trade magazines.
The Regional Development Fund is earmarked for purchasing advertising services within the specific region where the fees are generated. This fund is unique in that Exit is required to use it solely for regional development in the region where the funds originated. While these funds are intended to benefit the Exit name and system, there is no guarantee that any specific franchisee will directly benefit, although increased awareness and visibility are anticipated for all franchisees.