Who is responsible for notifying Sales Representatives and employees of modifications to the Exit Formula?

According to Exit's 2025 Franchise Disclosure Document, the franchisee is responsible for notifying its Sales Representatives and employees of any modifications to the Exit Formula. Exit reserves the right to modify the Exit Formula, including increasing 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 becomes effective upon notice to all Subfranchisors and Franchisees.

This means that as an Exit franchisee, you must communicate any changes to the Exit Formula to your sales team and staff. This ensures everyone is aware of the current terms and conditions. The Exit 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 requirement is fairly standard in franchising, as franchisors often update their operating procedures and fee structures. It is crucial for franchisees to stay informed and ensure their teams are also up-to-date to maintain compliance and avoid potential disputes. Franchisees should establish a clear process for disseminating this information to their staff, such as regular meetings or written updates, to ensure everyone is informed and understands the changes.