According to Exit's 2025 Franchise Disclosure Document, Continuing Fees are defined as the fees and dues paid by the franchisee according to the EXIT Formula, including MEMO fees as outlined in Section 9.13 of the Franchise Agreement. The EXIT Formula itself is further defined as the system of fees and dues described in Schedule 2 attached to the Franchise Agreement.

In simpler terms, Continuing Fees are the ongoing payments a franchisee must make to Exit during the term of their agreement. These fees are calculated using a specific formula (the EXIT Formula) detailed in Schedule 2 of the agreement. This formula likely outlines how the fees are calculated and when they are due. Additionally, the definition specifically mentions MEMO fees, which are outlined in section 9.13 of the franchise agreement, suggesting these are a component of the Continuing Fees.

For a prospective Exit franchisee, understanding the specifics of the EXIT Formula and MEMO fees is crucial. Schedule 2, which contains the EXIT Formula, will provide a detailed breakdown of how these fees are calculated. Section 9.13 of the Franchise Agreement will outline the MEMO fees. A franchisee should carefully review these sections to fully understand their ongoing financial obligations to Exit.

It is important to note that the Continuing Fees are in addition to the initial franchise fee. Franchisees should budget for these ongoing expenses when evaluating the financial viability of an Exit franchise. The method of payment for Continuing Fees is electronic bank transfer or other means as directed by Exit or the Subfranchisor.