What was the total revenue for Exit's transaction and development fees in 2023?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenues recognized over time: | |||
| Franchise sales and renewals | $ 374,466 | $ 432,411 | $ 431,299 |
| Regional development rights and | |||
| renewals | 493,549 | 946,819 | 496,281 |
| Annual membership fees | 4,579,962 | 4,750,812 | 5,048,225 |
| Software and training fees | 1,642,339 | 1,643,027 | 1,710,816 |
| Ancillary revenue | 443,377 | 453,825 | 532,289 |
| Revenues recognized at a point in time: | |||
| Convention income | 912,823 | 750,324 | 1,114,051 |
| Transaction and development fees | 6,974,711 | 6,981,403 | 8,395,365 |
| Other miscellaneous income | - | 33,171 | 130,067 |
| $ 15,421,227 | $ 15,991,792 | $ 17,858,393 |
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the total revenue from transaction and development fees in 2023 was $6,981,403. This revenue is recognized at a point in time, meaning it's recorded when the franchisee earns the revenue and collectability is reasonably assured. Transaction fees are flat fees for each transaction, and the rates vary based on the revenue generated by the franchisee.
These fees are generated from every sales or leasing transaction, which involves two transaction sides: a selling side and a buying side. Each side is subject to transaction fees that are payable to Exit immediately upon the finalization of each transaction. The amount of the transaction fee varies based on the gross commission earned by the franchise, ranging from $50 to $400 per transaction side.
Regional development fees are also included in this revenue. These fees are used for regional growth and development through advertising and promotion within the subfranchise region. Each transaction side is subject to a regional development fee of $35, although transactions with gross commissions of $2,500 or less are not subject to this fee. These fees are also payable to Exit immediately upon the finalization of each transaction.
For a prospective franchisee, understanding these fees is crucial as they directly impact the revenue generated by Exit. The fees are calculated based on the commission earned per transaction, and there are maximum limits per sales representative per year for both transaction fees ($2,700) and regional development fees ($500).