How is the Regional Development Fund used by Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
levision, internet, newspaper, trade magazines and other advertising and promotion mediums.
The Regional Development Fund is used to purchase advertising services within the Region within which the Regional Development Fund fees are generated.
EXIT is not required to spend any amount on advertising in any particular area or Region, except the Regional Development Fund which is used solely for regional development in the Region in which the funds are generated. These funds are intended for the benefit of the EXIT name and the EXIT system, and not necessarily for the direct benefit of any specific franchisee, although it is anticipated that all Franchisees will benefit from increased awareness and visibility of the EXIT name and the EXIT system.
The Advertising Funds may be used to meet all costs of administering, directing, preparing, placing and paying for national, regional or local advertising and promotion. EXIT is not required to maintain the money paid by Franchisees to the Funds and income earned by the Funds in separate accounts. No more than 10% of the advertising funds were used principally to solicit new franchise sales.
All Franchisees are required to contribute Advertising Funds at the same rate. Each of the Funds and an accounting of advertising expenditures is administered by EXIT. The Funds are not audited.
Annual financial statements and an accounting of the Funds will be sent to you via email or U.S. mail upon your written request sent to EXIT via email to snanan@exitrealty.com, or U.S. mail to EXIT Realty Corp. International, Attention: Steve Nanan, 2626 Argentia Road, Mississauga, Ontario, Canada, L5N 5N2.
Any Fund amount remaining at the end of a calendar year is carried over to be used in the future.
In the most recently concluded calendar year, EXIT spent 11.87% of the Funds on production, 2.01% of the Funds on media placement, 0% of the Funds on administrative expenses, 57.5% of the Funds on EXIT's website and internet marketing, 16.43% of the Funds on promotions and 40.51% of the Funds for regional development.
There is no advertising council composed of Franchisees that advises EXIT on advertising policies. The Franchise Agreement does not give you the power to form, change or dissolve an advertising council.
Source: Item 11 — FRANCHISOR'S AND SUBFRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–24)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Regional Development Fund is used to purchase advertising services within the specific region where the fees for the fund were generated. Exit is not obligated to spend any specific amount on advertising in any particular area or region, except for the Regional Development Fund, which must be used solely for regional development in the region where the funds originated. These funds are intended to benefit the Exit name and system, though not necessarily any specific franchisee directly. However, it is anticipated that all franchisees will benefit from increased awareness and visibility of the Exit brand.
The advertising fees are allocated to the United States Creative Fund, the United States Promotional Fund, and the Regional Development Fund. The United States Creative Fund is used to create concepts and programming for national and local advertising of Exit, covering employee and subcontractor costs for advertising services. The United States Promotional Fund is used for advertising and promotion across various mediums, including radio, television, internet, newspapers, and trade magazines.
In the most recently concluded calendar year, 40.51% of the advertising funds were allocated for regional development. The FDD also states that Exit may use the advertising funds to cover all costs of administering, directing, preparing, placing, and paying for national, regional, or local advertising and promotion. Any amount remaining in the fund at the end of a calendar year is carried over for future use. Franchisees do not have an advertising council to advise Exit on advertising policies, and the Franchise Agreement does not grant franchisees the power to form, change, or dissolve such a council.