How is the United States Creative Fund used by Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
From the fees generated from each sale or lease transaction, a portion of the fees is allocated to advertising and to other funds. See ITEM 6 of this Disclosure Document and Section 7.6 of the Franchise Agreement.
Advertising. The advertising fees are allocated to the following Advertising Funds (the "Funds"): United States Creative Fund, United States Promotional Fund and Regional Development Fund.
The United States Creative Fund is used to create concepts and programming used for national and local advertising of EXIT. EXIT uses the creative fund to pay its employees and subcontractors for the advertising services that it provides.
Source: Item 11 — FRANCHISOR'S AND SUBFRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 19–24)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a portion of the fees generated from each sale or lease transaction is allocated to advertising funds, including the United States Creative Fund. This fund is specifically used to create concepts and programming for both national and local advertising of Exit. Exit uses this fund to compensate its employees and subcontractors for the advertising services they provide.
In 2024, Exit allocated its advertising fees among several funds. Specifically, 11.87% of the funds were spent on production, 2.01% on media placement, 57.5% on Exit's website and internet marketing, 16.43% on promotions, and 40.51% for regional development. It is important to note that Exit is not obligated to spend any specific amount on advertising in any particular area or region, except for the Regional Development Fund, which is used solely for regional development in the region where the funds are generated.
Exit retains control over these advertising funds and is not required to maintain them in separate accounts. Franchisees do not have direct input on advertising policies, as there is no advertising council. Franchisees can request annual financial statements and an accounting of the funds by contacting Exit via email or U.S. mail. Any remaining funds at the end of the calendar year are carried over for future use.