Are software license fees charged per subfranchise and franchise for Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Representatives; which Agreement shall be in a form approved by Subfranchisor or EXIT. Franchisee shall provide the Subfranchisor and Franchisor with the version of the Sales Representative Agreement that they are using within their office.
9.13. Computer Information Systems
Franchisee shall utilize computer hardware and software as required by EXIT, including such proprietary computer software as EXIT may develop for use in connection with the EXIT System. Franchisee shall submit to EXIT and Subfranchisor such forms, reports, and records as specified and at the times indicated in this Agreement, in the Training Manuals and in other written communications from EXIT and Subfranchisor. EXIT has developed and implemented a computer based information system for purposes of maintaining a uniform electronic database of franchisee profiles, books and records. Franchisee agrees to co-operate in the ongoing development of this system, to pay a license fee not to exceed two hundred and fifty dollars ($250.00) per month related to computer software, to maintain records through this system, and to file and receive reports electronically to and from EXIT and Subfranchisor as may be required by the System. This monthly fee is to be paid through automatic monthly withdrawal. If Franchisee owns more than one (1) EXIT Franchise Agreement, and those Agreements are operated by the same l
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees are required to utilize specific computer hardware and software, including proprietary software developed by Exit for use within the Exit system. Franchisees must also submit required forms, reports, and records to Exit and the subfranchisor as specified in the franchise agreement, training manuals, and other written communications.
Exit has implemented a computer-based information system to maintain a uniform electronic database of franchisee profiles, books, and records. Franchisees must cooperate in the ongoing development of this system and pay a monthly license fee not exceeding $250.00 related to the computer software. This fee is paid through automatic monthly withdrawal.
If a franchisee owns more than one Exit Franchise Agreement operated by the same legal entity and using the same trade name, the monthly computer software license fee for the second and subsequent franchise agreements is reduced to 25% of the monthly license fee charged as of the date the subsequent franchise agreement(s) is signed. This means the fee would be $62.50 for each additional franchise.