What is the required action for Exit Franchisees to notify their Sales Representatives and employees about modifications to the Exit Formula?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
It is understood that this EXIT Formula may not be changed or modified in any way without the prior express written permission of EXIT. EXIT reserves the right to modify this 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.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit retains the right to modify the Exit Formula, including the ability to increase 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 modifications to the Exit Formula become effective upon notification to all subfranchisors and franchisees. It is then the franchisee's responsibility to inform their sales representatives and employees of these changes.
This requirement ensures that all members of the Exit franchise system, from the top-level franchisor down to individual sales representatives, are kept up-to-date on the current policies, procedures, and fee structures. This is particularly important for sales representatives, as their commission structures and operational guidelines are directly affected by the Exit Formula.