What was the total cost of Exit's franchise territories as of December 31, 2022?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | Goodwill 10 Years | $ 31,223 | $ (19,389) | | $ 11,834 | | | Total | | $ 31,223 | $ (19,389) | | $ 11,834 | | December 31, 2023 | | | | | | | Goodwill 10 Years | $ 31,223 | $ (16,475) | | $ 14,748 | | | Total | | $ 31,223 | $ (16,475) | | $ 14,748 | | December 31, 2022 | | | | | | | Goodwill 10 Years | $ 31,223 | $ (13,562) | | $ 17,661 | | | Total | | $ 31,223 | $ (13,562) | | $ 17,661 | | For the Years Ending December 31 | | Amount | |---|---|---| | 2025 | $ 2,914 | | | 2026 | 2,914 | | | 2027 | 2,917 | | | 2028 | 417 | | | 2029 | 417 | | WI532 EXIT REALTY DRIFTLESS GROUP 608 237 1770 aliwerger@gmail.com Ali Werger 117 W. Blackhawk Ave. Prairie Du Chien WI 53821
| December 31, 2024 | ||||
|---|---|---|---|---|
| Available-for-sale | ||||
| Thrivent | $ 62,813 | $ 6,065 | $ (2,294) | $ 66,584 |
| December 31, 2023 | ||||
| --- | --- | --- | --- | --- |
| Available-for-sale | ||||
| Thrivent | $ 61,754 | $ 1,620 | $ (3,417) | $ 59,957 |
EXHIBIT E DISCONTINUED FRANCHISES
EXHIBIT E – 1 TRANSFERRED FRANCHISES
| December 31, 2022 | ||||
|---|---|---|---|---|
| Available-for-sale | ||||
| Thrivent | $ 60,913 | $ 102 | $ (9,341) | $ 51,674 |
| Balance before | Debt | Balance after | ||
| Restructure | Advances | Reduction | Restructure | |
| Franchise territory – IL | $ 702,045 | $ 277,019 | $ (606,327) | $ 372,737 |
| Franchise territory – MN | 60,106 | 127,745 | (17,430) | 170,421 |
| Franchise territory – WI | 467,232 | 70,518 | (192,906) | 344,844 |
| Franchise territory – MI | 1,088,526 | 46,973 | (458,523) | 676,976 |
| Total | $ |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the costs associated with franchise territories are considered intangible assets and are capitalized. These costs are then amortized over the contract's life. As of December 31, 2022, the balance before restructure for the franchise territories in Illinois was $702,045, Minnesota was $60,106, Wisconsin was $467,232 and Michigan was $1,088,526. The total of these territories before restructure was $2,317,909.
These franchise territories are subject to notes payable, which are detailed in the financial statements. These notes are related to franchise territories in Wisconsin, Minnesota, Michigan, and Illinois. These notes are amended on September 12, 2023, and are payable in monthly installments through September 2033, with interest accruing at 3.00% per annum.
Prospective franchisees should note that Exit's accounting practices, such as amortizing franchise fees and capitalizing territory costs, can significantly impact the financial statements. Understanding these practices is crucial for assessing the financial health and performance of the franchise. Additionally, the restructuring of notes payable and the revaluation of intangible assets can affect the overall financial obligations and equity of the franchise.