What is the prohibited action regarding the Exit Formula?

According to Exit's 2025 Franchise Disclosure Document, the Exit Formula cannot be changed or modified in any way without the prior express written permission of Exit. However, 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 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.

This means that as a franchisee, you must adhere to the Exit Formula as it is presented and cannot unilaterally alter it. Any desired changes or modifications must be formally requested and approved in writing by Exit. This ensures uniformity and consistency across all Exit franchises, maintaining the brand's standards and operational procedures.

However, Exit reserves the right to make changes to the Exit Formula, including increasing annual membership fees by up to 5% each year. If an increase is less than 5%, the remaining percentage can be carried over to future years, allowing for potentially larger increases in subsequent years. Franchisees are responsible for informing their sales representatives and employees of any changes to the Exit Formula, ensuring everyone within the franchise is aware of the current policies and procedures.