What is the prohibited action regarding changing or modifying the Exit Formula without written permission?
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 Exit Formula cannot be changed or modified in any way without obtaining prior express written permission from Exit. This restriction ensures that all franchisees adhere to a standardized operational and financial model, maintaining consistency across the Exit franchise system.
Exit retains the right to modify the 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 modifications made by Exit become effective upon notice to all subfranchisors and franchisees.
It is the franchisee's responsibility to inform their sales representatives and employees of any changes to the Exit Formula. This ensures that everyone within the franchise organization is aware of and compliant with the updated terms, maintaining uniformity and adherence to Exit's standards.