Are there any circumstances under which Exit will accept a modified version of the FDD receipt acknowledgement?
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.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Exit Formula, which likely includes the FDD receipt, cannot be altered without Exit's express written permission. This requirement ensures uniformity and standardization across all Exit franchises.
This means that a prospective franchisee must use the receipt acknowledgement form as it is provided in the FDD. Any changes or modifications made by the franchisee without prior written approval from Exit would be a violation of the franchise agreement. This requirement protects Exit's interests by ensuring that all franchisees acknowledge receipt of the FDD in a consistent and legally sound manner.
It is important for potential franchisees to understand that this policy is in place to maintain consistency and protect the integrity of the Exit franchise system. If a franchisee attempts to modify the receipt without permission, it could lead to legal issues or a breach of the franchise agreement. Therefore, franchisees should adhere strictly to the provided form and seek written approval from Exit for any desired changes.