Under what condition can the Exit Formula be changed or modified?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
It is understood that this EXIT Formula may not be changed or modified in any way without the prior express written permission of EXIT. EXIT reserves the right to modify this EXIT Formula and may increase the Annual Membership and fees up to 5% per year. If EXIT increases any amounts less than 5%, the unused portion may be carried over to subsequent years. Any modification shall become effective upon notice to all Subfranchisors and Franchisees. It shall be Franchisee's obligation to notify its Sales Representatives and employees of modifications in the EXIT Formula.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Exit Formula, which outlines the fees and dues within the Exit system, cannot be changed or modified without the express prior written permission of Exit. This means that franchisees and subfranchisors cannot unilaterally alter any aspect of the formula as it is defined in their agreements.
However, Exit retains the right to modify the Exit Formula. Specifically, Exit can increase the Annual Membership and fees, but these increases are capped at 5% per year. If Exit chooses to increase these amounts by less than 5% in a given year, the unused portion of the allowable increase can be carried over to subsequent years, allowing for potentially larger increases in the future, so long as they are properly noticed.
Any modifications to the Exit Formula become effective once all subfranchisors and franchisees receive notice. It is then the franchisee's responsibility to inform their sales representatives and employees about these changes. This ensures that all members of the Exit organization are aware of the current fee structure and any changes that may affect their compensation or obligations.