What is the requirement for Exit franchisees and their equity holders to become EXIT Associates?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (D) Franchisee, or if Franchisee is an entity, all equity holders of the entity, shall become EXIT Associates and complete the EXIT Associate Profile, attached as Schedule 5 to this agreement. If Franchisee or any of its equity holders were "sponsored" into the EXIT System, prior to buying this Franchise, that Sponsorship will not change. If Franchisee or any of its equity holders were not sponsored into the EXIT System prior to purchasing this Franchise, those persons will be named as their own Sponsor. If a "self-sponsored" equity holder of the Franchisee terminates its equity holder relationship with the Franchisee, but stays in the EXIT System, the Sponsorship of that equity holder shall be transferred to the Subfranchisor.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees and all equity holders of the franchisee entity must become Exit Associates. To fulfill this requirement, they must complete the EXIT Associate Profile, which is attached as Schedule 5 to the franchise agreement.
If the franchisee or any of its equity holders were already sponsored into the Exit system before buying the franchise, their existing sponsorship will remain unchanged. However, if they were not previously sponsored, they will be designated as their own sponsor.
In the event that a self-sponsored equity holder terminates their relationship with the franchisee but remains within the Exit system, their sponsorship will be transferred to the subfranchisor. This ensures continuity of the sponsorship within the Exit network.