What is the required action for Exit regarding notice of modifications to the Exit Formula to Subfranchisors and Franchisees?
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.
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. Any modifications to the Exit Formula become effective upon notice to all Subfranchisors and Franchisees.
It is the Franchisee's responsibility to inform their Sales Representatives and employees of any changes to the Exit Formula. This ensures that everyone within the Exit system is aware of the current fee structure and operational guidelines.
This requirement ensures transparency and keeps all parties informed about potential changes in fees and operational procedures. Franchisees should establish a reliable communication system to disseminate information to their sales representatives and employees promptly.