Under the Exit agreement, what is the 'EXIT Formula'?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- (F) EXIT Formula: "EXIT Formula" means the system of fees and dues described in Schedule 2 attached to this Agreement.
4. Annual Membership
EXIT Formula (U.S. Version Rev. 03.23.25)
a) Each EXIT Associate shall pay to EXIT an Annual Membership of $425.00. The Annual Membership is non-refundable and is due and payable on the Effective Date of the Sales Representative's Agreement or the date the person becomes a part of the EXIT System, as applicable, and on each July 1st thereafter. The Annual Membership for the first year shall be prorated based on the number of days to the following July 1st.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the 'EXIT Formula' refers to the system of fees and dues that franchisees pay. This formula is detailed in Schedule 2 of the Franchise Agreement. The EXIT Formula (U.S. Version Rev. 03.23.25) includes an annual membership fee.
The EXIT Formula also defines key roles within the Exit system. Sales Representatives are licensed real estate salespersons and brokers working for an Exit Franchise as employees or independent contractors. EXIT Associates include subfranchisors, franchisees, sales representatives, and non-licensed individuals under contract with an Exit franchise, subfranchise, or Exit itself, who have met specific requirements.
Each EXIT Associate is required to pay an annual membership fee of $425 to Exit. This membership fee is non-refundable and is due upon the effective date of the Sales Representative's Agreement or when the person becomes part of the Exit System. Subsequently, the fee is payable each year on July 1st. For the first year, the annual membership fee is prorated based on the number of days remaining until the following July 1st.