What is the required action for Exit regarding modifications to the Exit Formula?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
16. Currency
Except as provided in Section 9.k) above, all amounts described in the EXIT Formula are in U.S. Dollars.
THIS 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.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Exit Formula cannot be changed or modified without the prior express written permission of Exit. Exit retains the right to modify the 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 to the Exit Formula becomes effective upon notice to all Subfranchisors and Franchisees. It is the Franchisee's obligation to notify its Sales Representatives and employees of modifications in the Exit Formula.
This 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 ensures all parties are aware of the current terms and conditions related to fees, dues, and other financial aspects of the franchise agreement.