Franchising Since: 2023
Headquarters: West Palm Beach, Florida
Estimated Number of Units: 85
Franchise Description: The franchisor is Exit Factor, LLC. The franchisor is a member of United Franchise Group. The franchisee will own and operate an Exit Factor business which will provide business coaching and consulting services to business owners, which are designed with the goal of increasing the profit, efficiency, and value of their companies, with the goal of positioning those businesses for a future exit. Franchisees operate from a single office location within a Designated Marketing Area, serving primarily small to medium-sized businesses.
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Territory Granted: Franchisees are granted the right to operate an Exit Factor business within a designated marketing area. The franchisee’s business must be located in the designated marketing area which will be a geographic area defined and named by us which contains 8,000 or more registered businesses. The designated marketing area is exclusive, and the franchisor will not open or operate company-owned businesses and/or grant additional franchisees the right to open or operate a business consulting firm within the designated marketing area. The continuation of the exclusive area is conditioned on meeting minimum gross revenues in each designated marketing area. Franchisees must confine marketing and sales activities to their designated marketing area, though they may accept unsolicited clients from outside it.
Obligations and Restrictions: Franchisees are not required to sign a personal guarantee; however, they are required to personally sign the Franchise Agreement, even if they form a corporation, partnership, or other business entity for the operation of the franchise. If franchisees are an individual, they must directly supervise and manage the Exit Factor business. If franchisees are a corporation, partnership, or other business entity, a principal, general partner, or a fully trained manager must devote full-time and best efforts to the management and operation of the Exit Factor business. The franchisor requires franchisees to offer and sell only services and goods that the franchisor has approved, but there is no obligation to provide all of the services and goods authorized.
Term of Agreement and Renewal: The length of the initial franchise term is 35 years. A renewal term of 35 years is available if requirements are met.
Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease, or obligation of theirs, or has any practice or intent to sell, assign, or discount to a third party all or any part of any financing arrangement of theirs. Eligible United States military veterans will receive a discount equal to 10% of the standard franchise establishment fee or 5% of the standard transfer fee.
Estimated Initial Investment
| Name of Fee | Low | High |
| Franchise Establishment Fee | $39,500 | $39,500 |
| Travel and Living Expenses while at Training School | $230 | $600 |
| Marketing Fund Initial Membership Fee | $550 | $550 |
| Premises Lease | $264 | $4,620 |
| Initial Advertising | $1,650 | $3,700 |
| Software and Supplies Package | $14,995 | $16,495 |
| Equipment and Office Software | $0 | $1,650 |
| Insurance | $825 | $5,390 |
| Additional Funds (6 mos.) | $5,500 | $17,050 |
| ESTIMATED TOTAL | $63,514 | $89,555 |
Other Fees
| Type of Fee | Amount |
| Royalty | A monthly fee equal to the greater of 8% of gross revenues or $300 - months 1-12 $600 - months 13-24 $900 - after 24 months. |
| Marketing Fund Contribution | A monthly fee equal to the greater of $165 (or $125 for an additional territory) or 2% of gross revenues. |
| Market Cooperative Contribution | As determined by the co-op. Currently, there is non. |
| Technology Fee | A monthly fee equal to $200 per month or the then-current fee. |
| Transfer Fee | $19,500 for the transfer of each designated marketing area, or the then-current transfer fee. |
| Renewal Fee | $1,500 |
| Consultant Fee | $125 per consultant per month or the then-current fee. |
| Consultant Training Fee | $495 or the then-current training fee per person for all trainees beyond the first person attending training plus travel & hotel expenses. |
| Audit-Inspection Costs | $1,500 or the then-current fee. |
| Non-Compliance fee | $250-$500 per compliance violation. |
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