Is there an advertising council composed of Franchisees that advises Exit on advertising policies?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
keting, 16.43% of the Funds on promotions and 40.51% of the Funds for regional development.
There is no advertising council composed of Franchisees that advises EXIT on advertising policies. The Franchise Agreement does not give you the power to form, change or dissolve an advertising council.
There is no obligation for EXIT to maintain any advertising program or to spend any amount on advertising in your area or territory, except as provided for in the Regional
Development Fund. EXIT currently advertises using print, radio, television and the internet, with local, regional and national coverage. EXIT currently employs both an inhouse advertising department and national or regional advertising agencies.
You may develop advertising materials for your own use, at your own cost. We must approve these advertising materials in advance and in writing. In addition, we may, or EXIT may, but is not required to, provide advertising materials to you for your use.
There is no Advertising Council or local Regional Advertising Cooperative. Franchisees are not required to participate in a local or regional advertising council or cooperative. Except for the obligation to purchase advertising with the Regional Development Fund Fees, EXIT has no other obligation to conduct advertising. Regional Development Fund Fees are used solely to purchase advertising, including billboard advertising, in the Region in which the Regional Development Fund Fees are generated.
Other Funds. A portion of the fees is allocated to 2 other funds; the United States Charitable Fund and the Administrative Fund.
The United States Charitable Fund is used by EXIT to make donations to a United States charity or charities selected by EXIT. As of December 31, 2024, there was a balance of $1,221,981.49 in the Charitable Fund.
Source: Item 11 — FRANCHISOR'S AND SUBFRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–24)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, there is no advertising council composed of franchisees that advises Exit on advertising policies. The franchise agreement does not empower franchisees to form, change, or dissolve an advertising council. This means franchisees do not have a formal mechanism to directly influence Exit's advertising strategies or policies.
Exit utilizes various advertising mediums, including print, radio, television, and the internet, with local, regional, and national coverage. Exit employs both an in-house advertising department and national or regional advertising agencies. Franchisees can develop their own advertising materials, but these require prior written approval from Exit. Exit may also provide advertising materials for franchisees' use, but is not required to do so.
Exit is not obligated to maintain any advertising program or spend any specific amount on advertising in a franchisee's area or territory, except as provided for in the Regional Development Fund. Regional Development Fund Fees are used solely to purchase advertising, including billboard advertising, in the region where the fees are generated. This fund is intended to benefit the Exit name and system, though not necessarily any specific franchisee directly.
In the most recently concluded calendar year, Exit spent 11.87% of the Funds on production, 2.01% of the Funds on media placement, 0% of the Funds on administrative expenses, 57.5% of the Funds on EXIT's website and internet marketing, 16.43% of the Funds on promotions and 40.51% of the Funds for regional development. Franchisees are required to contribute to Advertising Funds at the same rate, and Exit administers these funds. The funds are not audited, but annual financial statements and an accounting of the Funds will be sent to franchisees upon written request.