What is the total future expected sublease income for Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
cember 2, 2022. During 2024, the unrelated third party entered into a new noncancelable lease agreement that began on August 12, 2024, and expires on August 12, 2027.
A portion
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the total future expected sublease income is detailed in Item 23. The document states that Exit subleases portions of its leased spaces to unrelated third parties. The expected minimum future sublease rental income under these operating subleases is outlined for the years 2025, 2026, and 2027.
Specifically, Exit anticipates sublease income of $50,400 in 2025 and $30,300 in 2026. For 2027, the expected sublease income is $7,600. When these individual yearly amounts are combined, the total future expected sublease income for Exit is $88,300.
For a prospective Exit franchisee, this indicates that Exit generates additional income by subleasing portions of their leased spaces. This sublease income can offset the company's operating lease expenses, which totaled $94,117 in 2024. Understanding the details of these sublease agreements, including their terms and potential for renewal, could be a valuable consideration for anyone looking to invest in an Exit franchise.