Under what conditions does Exit reserve the right to modify the System?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ted to other franchisees and subfranchisors. EXIT may develop and license other marks in conjunction with systems other than the EXIT System, on any terms and conditions EXIT deems advisable.
8.2. Substitution; Modification
EXIT reserves the right to modify the System or any part of the System at any time, if EXIT, in its sole discretion, determines that the modification will be beneficial to the System, and as changed, it shall remain the System referred to in this Agreement. Any improvements in the System that may be developed or proposed by Franchisee, its employees or agents ("Improvements") shall become the sole and exclusive property of EXIT, who shall have the right to adopt and perfect them without compensation to Franchisee. At EXIT's request, Franchisee, or its employees or agents shall assign any and all rights in Improvements to EXIT.
**8.3.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit retains the right to modify the System at any time. This modification is permissible if Exit, in its sole discretion, determines that the change will benefit the System as a whole. The modified System will then be considered the official System as defined in the Franchise Agreement.
Furthermore, Exit reserves the right to modify the EXIT Formula, which includes the fees and dues structure. The company may increase the Annual Membership and fees by up to 5% per year. If Exit increases these amounts by less than 5%, the unused portion of the allowable increase can be carried over to subsequent years. Any such modification becomes effective upon notice to all Subfranchisors and Franchisees, and it is the Franchisee's responsibility to inform their Sales Representatives and employees of these changes.
Any improvements to the System developed or proposed by a franchisee, its employees, or agents become the sole and exclusive property of Exit. Exit has the right to adopt and perfect these improvements without providing any compensation to the franchisee. At Exit's request, the franchisee, its employees, or agents must assign all rights to these improvements to Exit.