Under what conditions might Exit require a franchisee to upgrade their computer hardware or software?

According to Exit's 2025 Franchise Disclosure Document, Exit may require franchisees to upgrade their computer hardware and software to maintain compatibility with the MEMO (Franchise Report System) software. The MEMO software, which is owned and maintained by Exit, is used to calculate and store transaction fees, regional development fees, and company development fees. It also tracks franchise contract details and sales representative information, including commission plans and sales performance.

Exit estimates that the initial cost to purchase a computer ranges from $500 to $1,000 per computer, and a franchisee will likely need 2-4 computers during their initial 6 months in business. The franchisee's obligation to upgrade their computer or its operating system depends on technology advances and Exit's upgrades to the MEMO software.

In practical terms, this means that as Exit updates its MEMO software to incorporate new features or technologies, franchisees may need to invest in newer computer hardware or software to ensure their systems remain compatible. This is a fairly standard practice in franchising, as franchisors often update their technology to improve efficiency and maintain a consistent brand experience. Prospective franchisees should factor in potential future technology upgrade costs when evaluating the overall investment required to operate an Exit franchise.