What is the required format for the Exit Formula to be included in Exit contracts?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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, which outlines the system of fees and dues, must be included as part of each Exit contract for all Exit Associates. Additionally, any revisions to the Exit Formula must be provided to each Exit Associate in a timely manner.
This requirement ensures that all parties involved, including subfranchisors, franchisees, sales representatives, and non-licensed personnel under contract, are fully aware of the financial obligations and any changes to those obligations within the Exit system. By making the Exit Formula a formal part of the contract, Exit aims to maintain transparency and avoid potential disputes regarding fees and dues.
For a prospective Exit franchisee, this means ensuring that the Franchise Agreement includes Schedule 2, which details the Exit Formula. It also implies a responsibility to stay informed about any modifications to the Exit Formula and to promptly communicate these changes to their sales representatives and employees. Failure to comply with these requirements could lead to breaches of contract or misunderstandings within the franchise network.