What is the total estimated amortization expense for the Exit franchise?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
indicate their carrying amount may not be recoverable.
On September 10, 2023, the Company entered into a 10-year agreement with Exit Realty Corp. International for the franchise territories currently managed by the Company. As part of the agreement, the Company revalued the intangible assets ass
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the total estimated amortization expense is $729,814. The amortization expense is broken down by year, with $84,065 estimated for each of the years 2025, 2026, and 2027, $83,997 for 2028, $83,808 for 2029, and $309,814 thereafter.
Amortization is the process of gradually writing off the initial cost of an asset over a period. For Exit franchisees, this primarily relates to the amortization of intangible assets acquired when purchasing the franchise rights. These intangible assets are amortized on a straight-line basis over terms ranging from eight to fifteen years.
Understanding the amortization schedule is crucial for financial planning. It allows franchisees to anticipate these non-cash expenses and factor them into their overall profitability calculations. While amortization doesn't represent an actual cash outflow, it does reduce taxable income, which can lower income tax liabilities. Franchisees should consult with a financial advisor to fully understand the tax implications of amortization and how it affects their specific financial situation.