Is there a transfer fee required when transferring an Exit franchise, and where is it specified?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
en consent of Subfranchisor, as provided in Section 18.3 below. Any
unauthorized Transfer, whether voluntary, involuntary, by operation of law or otherwise, or any attempt to do so, shall be deemed void and be grounds for termination of this Agreement by Subfranchisor.
18.3. Consent to Transfer Conditions
Subfranchisor will not unreasonably withhold its consent, which consent must be in writing, to any proposed Transfer, provided Franchisee and/or the transferee comply with the following,
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a transfer fee is generally required when a franchisee seeks to transfer their franchise. Section 18.3(G) specifies that the franchisee must pay the transfer fee required under Section 18.5 as a condition for the transfer to be approved. However, no transfer fee is payable if an individual franchisee assigns its interest to a legal entity in accordance with Section 14.2 of the agreement.
Several conditions must be met for Exit to approve a transfer. The franchisee must be in full compliance with the franchise agreement, including curing all defaults and paying all monies due to Exit, the Subfranchisor, and the Brokers' Council. The franchisee must also provide current and accurate financial statements and other documents sufficient for Exit to assess the proposed transferee's character, integrity, creditworthiness, business experience, net worth, professional credentials, and ethical background.
Additional requirements include providing copies of the transfer documents in a form acceptable to Exit, complete financial information on the franchise, and a full general release and waiver in favor of Exit and its affiliates. The proposed transferee must also sign Exit's current form of Guaranty of the Agreement and complete the required training. These conditions ensure that any transfer maintains the standards and financial stability of the Exit franchise system.