Which section of the Exit Franchise Agreement addresses the franchisee's obligations concerning advertising?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
From the fees generated from each sale or lease transaction, a portion of the fees is allocated to advertising and to other funds. See ITEM 6 of this Disclosure Document and Section 7.6 of the Franchise Agreement.
Advertising. The advertising fees are allocated to the following Advertising Funds (the "Funds"): United States Creative Fund, United States Promotional Fund and Regional Development Fund.
The United States Creative Fund is used to create concepts and programming used for national and local advertising of EXIT. EXIT uses the creative fund to pay its employees and subcontractors for the advertising services that it provides.
The United States Promotional Fund is used to advertise and promote in radio, television, internet, newspaper, trade magazines and other advertising and promotion mediums.
The Regional Development Fund is used to purchase advertising services within the Region within which the Regional Development Fund fees are generated.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 18–19)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Section 7.6 of the Franchise Agreement outlines the franchisee's obligations regarding advertising. Additionally, Item 6 of the FDD also contains information regarding fees generated from each sale or lease transaction, a portion of which is allocated to advertising and other funds. These advertising fees are further allocated to specific funds, including the United States Creative Fund, the United States Promotional Fund, and the Regional Development Fund.
The United States Creative Fund is designated for creating concepts and programming for both national and local advertising of Exit, covering the costs of employees and subcontractors involved in providing advertising services. The United States Promotional Fund is used for advertising and promotion across various mediums such as radio, television, internet, newspapers, and trade magazines. The Regional Development Fund is specifically used to purchase advertising services within the region where the fees are generated.
Exit franchisees should be aware of how these advertising funds are used and how they contribute to both national and local advertising efforts. Understanding the allocation of fees and the types of advertising activities supported by each fund can help franchisees appreciate the value of their contributions and the potential impact on their business. Furthermore, franchisees should familiarize themselves with Section 7.6 of the Franchise Agreement to fully understand their obligations and rights related to advertising.