Is Exit required to spend any amount on advertising in any particular area or Region?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
g services within the Region within which the Regional Development Fund fees are generated.
EXIT is not required to spend any amount on advertising in any particular area or Region, except the Regional Development Fund which is used solely for regional development in the Region in which the funds are generated. These funds are intended for the benefit of the EXIT name and the EXIT system, and not necessarily for the direct benefit of any specific franchisee, although it is anticipated that all Franchisees will benefit from increased awareness and visibility of the EXIT name and the EXIT system.
The Advertising Funds may be used to meet all costs of administering, directing, preparing, placing and paying for national, regional or local advertising and promotion. EXIT is not required to maintain the money paid by Franchisees to the Funds and income earned by the Funds in separate accounts. No more than 10% of the advertising funds were used principally to solicit new franchise sales.
All Franchisees are required to contribute Advertising Funds at the same rate. Each of the Funds and an accounting of advertising expenditures is administered by EXIT. The Funds are not audited.
Annual financial statements and an accounting of the Funds will be sent to you via email or U.S. mail upon your written request sent to EXIT via email to snanan@exitrealty.com, or U.S. mail to EXIT Realty Corp. International, Attention: Steve Nanan, 2626 Argentia Road, Mississauga, Ontario, Canada, L5N 5N2.
Any Fund amount remaining at the end of a calendar year is carried over to be used in the future.
Source: Item 11 — FRANCHISOR'S AND SUBFRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–24)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit is generally not required to spend a specific amount on advertising in any particular area or region. However, there is an exception regarding the Regional Development Fund. This fund is specifically used to purchase advertising services within the region where the fees for the fund were generated. Therefore, Exit is obligated to use the Regional Development Fund solely for regional development in the region where the funds originated.
The funds from the Regional Development Fund are intended to benefit the Exit brand and system as a whole, but not necessarily any specific franchisee directly. However, it is anticipated that all franchisees will benefit from the increased awareness and visibility of the Exit name and system due to these advertising efforts. The advertising fees are allocated to three different funds: the United States Creative Fund, the United States Promotional Fund, and the Regional Development Fund.
In the most recently concluded calendar year, Exit spent 40.51% of the Funds for regional development. The FDD also states that Exit is not obligated to maintain any advertising program or spend any amount on advertising in a franchisee's area or territory, except as provided for in the Regional Development Fund. Franchisees are also not required to participate in a local or regional advertising council or cooperative, with the exception of the obligation to purchase advertising with the Regional Development Fund Fees.