Are revisions to the Exit Formula required to be provided to each Exit Associate?
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.
16. Currency
Except as provided in Section 9.k) above, all amounts described in the EXIT Formula are in U.S. Dollars.
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 must form part of each Exit Associate's contract, and revisions to this formula must be provided to each Exit Associate in a timely manner. The Exit Formula outlines the system of fees and dues, as described in Schedule 2 of the agreement.
Exit retains the right to modify the Exit Formula, including increasing the annual membership and fees by up to 5% per year. If any increase is less than 5%, the unused portion can be carried over to subsequent years. 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 all members of the Exit team are aware of the current fee structure and any modifications that may impact their earnings or obligations.