On what page of the Exit Franchise Agreement can I find information about the continuing fees?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
7. CONTINUING FEES
7.1. EXIT Formula.
In addition to the Initial Fee, Franchisee, during the term of this Agreement and any extensions or renewal terms, shall pay Continuing Fees in accordance with the EXIT Formula (as incorporated in Section 19), which amounts shall be collected and paid to Subfranchisor or EXIT according to the EXIT Formula and as directed by Subfranchisor or EXIT, according to the Subfranchise Agreement between them. Continuing Fees shall be paid by electronic bank transfer or by such means as Subfranchisor and EXIT may direct.
7.2. Interest, Late Charges and Overdue Amounts
[Item 23: RECEIPT]
42. DEFINITIONS
In addition to the definitions set forth throughout this Agreement, the words and phrases set forth below shall have the following meanings:
(D) Continuing Fees: "Continuing Fees" means the fees and dues paid by Franchisee pursuant to the EXIT Formula including the MEMO fees outlined in Section 9.13 of the Franchise Agreement.
(F) EXIT Formula: "EXIT Formula" means the system of fees and dues described in Schedule 2 attached to this Agreement.
[Item 23: RECEIPT]
19. THE EXIT FORMULA
See Schedule 2 attached to and incorporated in this Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Section 7 of Item 23 discusses continuing fees. Specifically, section 7.1 mentions that franchisees must pay continuing fees as outlined in the EXIT Formula, which is incorporated in Section 19 of the agreement. These fees are paid to the subfranchisor or EXIT, as directed, via electronic bank transfer or other specified means.
Section 19 of Item 23 indicates that details of the Exit Formula are found in Schedule 2, which is attached to and incorporated into the agreement. Additionally, section D in the definitions section of Item 23 defines "Continuing Fees" as the fees and dues paid by the franchisee according to the EXIT Formula, including MEMO fees outlined in Section 9.13 of the Franchise Agreement.
Therefore, to understand the specifics of the continuing fees, a prospective Exit franchisee should review Section 7 and 9.13 of Item 23, Schedule 2, and Section 19 within the Franchise Agreement.