What was the total amount spent on advertising and promotion for Exit in 2023?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Current liabilities | |||
| Bank overdraft | $ 603,412 | $ 344,392 | $ - |
| Accounts payable | 7,055,216 | 8,030,086 | 6,593,994 |
| Income taxes payable | - | 15,000 | 351,968 |
| Other current liabilities | 495,000 | - | - |
| Advanced from related party | 32,704 | 35,579 | 34,744 |
| Line of credit | 521,232 | 151,217 | - |
| Current portion of notes payable | 343,083 | 1,281,506 | 1,518,786 |
| Short-term notes payable - related parties | 351,676 | 816,338 | - |
| Current portion of deferred revenue | 3,140,717 | 3,636,617 | 3,523,417 |
| Total current liabilities | 12,543,040 | 14,310,735 | 12,022,909 |
| Long-term liabilities | |||
| Notes payable, net of current | 1,559,052 | 1,889,505 | 2,250,108 |
| Deferred i |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the total expenditure on advertising and promotion in 2023 was $2,858,751. This figure is part of the operating expenses detailed in the consolidated financial statements. It's important to note that this amount reflects Exit's overall spending on advertising and promotion across the entire system, not just within a specific region or for a single franchisee.
Prospective franchisees should understand how Exit allocates and utilizes these advertising funds. Item 23 of the FDD also mentions that Exit applied for reimbursements from Exit Realty Corp. International for advertising costs. In 2023, these reimbursements totaled $49,162 and are netted against the advertising costs in the Statements of Income (Loss). Additionally, a reclassification from sponsorship revenue to advertising costs occurred in 2023, amounting to $34,952.
These reimbursements and reclassifications can impact the net advertising expenditure reported. The FDD also indicates that Exit manages several funds, including a United States Advertising Fund, which is used for advertising and promotion within the Exit system. However, Exit has sole discretion over these funds and is not obligated to spend any specific amount on advertising in any particular area or region. This means that while a significant amount is spent on advertising overall, there's no guarantee that a specific franchisee will directly benefit from these expenditures.
For a prospective franchisee, it is crucial to understand Exit's advertising strategy, how funds are allocated, and what kind of support they can expect in terms of local advertising and promotional activities. It would be prudent to inquire about the specific advertising plans for their region and how they can leverage the brand's overall advertising efforts to benefit their franchise.