factual

What is the Renewal Fee for an Exit franchise for a five-year renewal?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

osure Document and is not refundable.

ITEM 6 OTHER FEES

Type of Fee Amount Due Date Remarks
Computer $250 Monthly Payable by you to
Software Fee1 EXIT
Renewal Fee 10% of the then current Initial Franchise Fee for a territory of your size, not to exceed 25% of the initial franchise fee paid for a five (5) year renewal; or 15% of the then current Initial Franchise Fee for a territory of your size not to exceed 37.5% of the initial franchise fee paid for a ten (10) year renewal. At the time the Franchise Agreement is renewed (5 years).

Source: Item 6 — OTHER FEES (FDD pages 13–15)

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, the renewal fee for a five-year renewal is 10% of the then-current Initial Franchise Fee for a territory of your size. However, this fee will not exceed 25% of the initial franchise fee you originally paid. This fee is payable to Exit Realty Upper Midwest at the time the Franchise Agreement is renewed, which is every five years.

This means that if the initial franchise fee has increased since you first purchased your franchise, you will pay 10% of the higher, current fee, unless that amount exceeds 25% of what you initially paid. In that case, you will only pay up to the 25% cap of your original fee. For example, if you paid an initial franchise fee of $50,000, the maximum you would pay for the renewal fee is $12,500 (25% of $50,000), regardless of how high the initial franchise fee has risen in the intervening years.

It is important to note that all fees are subject to change by Exit Realty Upper Midwest or Exit during the term of the agreement. Additionally, memberships and fees may increase by up to 7% annually, as detailed in Section 16 of the Exit Formula. Therefore, prospective franchisees should factor in potential fee increases when considering the long-term costs of franchise ownership.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.