What was the reduction for amounts deemed uncollectible for Exit in 2023?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
e to be issued, the Company continues to sell franchises, and is generating franchise commissions revenues from open and operating franchisees. The Company believes that the combination of the actions taken, along with the decrease in interest rates that are projected to induce housing market stimulation, will enable the Company to meet its funding requirements for one year from the date these financial statements were available to be issued. If necessary, stockholders of the Company intend to provide any financial assistance needed by the Company should its cash flows from operations combined with its cash balances no
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the reduction for amounts deemed uncollectible in 2023 was $10,100. This figure represents a decrease in revenue due to amounts that Exit determined it could not collect. This reduction impacts the overall deferred revenues for that year.
Specifically, the table provided in Item 23 of the FDD outlines the deferred revenues and associated changes for the years 2022, 2023 and 2024. The reduction for uncollectible amounts is listed as a negative figure, indicating a subtraction from the total revenues. For a prospective franchisee, this indicates that Exit does encounter situations where it cannot collect the full amount of fees owed to it.
It is important to note that while Exit had a reduction for uncollectible amounts in 2023, there was no such reduction listed for 2024 or 2022. This could be due to a variety of factors, such as changes in Exit's credit policies or the economic conditions affecting its franchisees. Franchisees should inquire about Exit's policies for managing and collecting receivables to understand the potential risk of uncollectible amounts.