What is the required action for Exit to notify Subfranchisors and Franchisees about modifications to the Exit Formula?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ent to the EXIT Associate's commencement of the competing arrangement and all Recruits of that EXIT Associate will be redirected to the primary role Franchise or Subfranchisor most recently under written contract with the EXIT Associate for at least 90 days prior to the action, or if the Franchise no longer exists, to the Subfranchise.
15. Modifications to the EXIT Formula
| ------------------------------------------- | -- | -- |
|---|
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.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit reserves the right to modify the Exit Formula, including increasing 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. To implement any modification to the Exit Formula, Exit must provide notice to all Subfranchisors and Franchisees.
It is the franchisee's responsibility to then notify their Sales Representatives and employees of these modifications. This ensures that all levels of the Exit organization are informed of any changes to the fee structure or operational procedures. The Exit Formula must form part of each Exit contract for all Exit Associates, and revisions to this formula must be provided to each Exit Associate in a timely manner.
This requirement ensures transparency and keeps all parties informed of changes that could affect their financial obligations or operational procedures. Franchisees should pay close attention to any notices from Exit regarding modifications to the Exit Formula and promptly communicate these changes to their staff to maintain compliance and avoid misunderstandings.