What is the obligation of the Exit franchisee to notify its sales representatives and employees of modifications to the Exit formula?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
It is understood that this EXIT Formula may not be changed or modified in any way without the prior express written permission of EXIT. EXIT reserves the right to modify this EXIT Formula and may increase the Annual Membership and fees up to 5% per year. If EXIT increases any amounts less than 5%, the unused portion may be carried over to subsequent years. Any modification shall become effective upon notice to all Subfranchisors and Franchisees. It shall be Franchisee's obligation to notify its Sales Representatives and employees of modifications in the EXIT Formula.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the franchisee has a responsibility to inform their sales representatives and employees about any changes made to the Exit Formula. The Exit Formula outlines the terms and conditions for Exit Associates. Exit retains the right to modify the Exit Formula, including the ability to increase annual membership and fees by up to 5% per year.
Any modifications to the Exit Formula become effective once all subfranchisors and franchisees receive notice. It is then the franchisee's duty to ensure that all sales representatives and employees are aware of these changes.
This obligation ensures that all members of the Exit team are operating under the most current guidelines and fee structures. This requirement is important for maintaining transparency and consistency within the Exit franchise system.