Does Exit Realty negotiate purchase agreements with suppliers for the benefit of franchisees, excluding approved suppliers?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Except for the license of the MEMO system, neither EXIT nor its Affiliates are Approved Suppliers, and no officer of EXIT owns an interest in an Approved Supplier. There are no purchasing or distribution cooperatives in existence as of the date of this Disclosure Document. Except for Approved Suppliers, EXIT does not negotiate purchase agreements with suppliers for the benefit of Franchisees. EXIT does not provide benefits to Franchisees based on a Franchisee's purchase of a particular product or service or use of particular suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–18)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit does not negotiate purchase agreements with suppliers, excluding approved suppliers, for the benefit of franchisees. However, Exit does negotiate royalty payments with approved suppliers.
Specifically, approved suppliers may pay Exit, through Ah$um America, Inc., a royalty based on sales revenues for each product sold utilizing the Exit mark. The amount is negotiated with each approved supplier, either as a percentage of revenues or a flat fee, and varies from supplier to supplier.
In 2024, Exit, through Ah$um America, Inc., received $246,406.79 in royalties from approved suppliers and $1,370,925.52 from its MEMO software license and access fees. The total of these amounts constituted 6.9% of Exit's 2024 revenues, which totaled $19,674,709.52. Franchisees should be aware that Exit benefits financially from the use of approved suppliers through these royalty payments.