What was the net carrying value of Exit's organization costs as of December 31, 2022?

According to Exit's 2025 Franchise Disclosure Document, the costs associated with organizing the company, including legal fees, are capitalized. These costs are then amortized on a straight-line basis over a period of fifteen years and are reported at cost, net of accumulated amortization. This means that the initial expenses are recorded as assets and gradually expensed over 15 years.

The FDD does not explicitly state the net carrying value of Exit's organization costs as of December 31, 2022. While it mentions that these costs are capitalized and amortized, it does not provide the specific amount of the initial capitalized costs or the accumulated amortization as of that date.

For a prospective franchisee, this means that while the FDD describes the accounting treatment of organization costs, it does not offer the specific financial details needed to assess the impact of these costs on Exit's financial statements. To obtain this information, a prospective franchisee should consider asking Exit for the specific amount of capitalized organization costs and the accumulated amortization related to those costs as of December 31, 2022. This information would provide a clearer picture of the net carrying value of these assets and their impact on the company's financial position.