Exit Factor Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$62,845 - $86,995
Franchise Fee
$19,500
Min Cash Required
$5,000
Total US Locations
34
Business Summary
Exit Factor businesses provide business coaching and consulting services to business owners. These services are designed to help companies increase their profit, efficiency, and overall value, as well as prepare them for a future sale. Exit Factor primarily serves small to medium-sized businesses and operates from an office location within a designated marketing area.
Corporate History
Exit Factor, LLC was established in May 2022 as a Florida limited liability company. It began offering franchises for sale in September 2023. Exit Factor does not operate any company-owned businesses. The company is part of the United Franchise Group, a collection of affiliated franchising brands such as Signarama, Fully Promoted, and Transworld Business Advisors, which share common ownership and are all based in West Palm Beach, Florida.
Financial Overview
Investment Range
$62,845 - $86,995
Franchise Fee (Low)
$19,500
Franchise Fee (High)
$39,500
Minimum Cash Required
$5,000
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$14,995
Equipment Costs (High)
$18,145
Working Capital
$10,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Exit Factor's financial statements show a pattern of net losses, with $(27,240) in 2024, $(28,448) in 2023, and $(33,285) in 2022. The company's member's equity has also decreased from $68,715 in 2022 to $13,027 in 2024. While current assets exceed current liabilities, an addendum specific to Virginia franchisees notes a significant risk: the estimated initial investment range for an Exit Factor business ($59,415 to $82,345) exceeds the franchisor's member's equity of $40,267 as of December 31, 2023. The auditors have not raised a going concern qualification, indicating management believes the company can continue operations for at least the next twelve months.
Financing Details
Exit Factor does not offer any direct or indirect financing to its franchisees. This includes not guaranteeing any notes, leases, or other obligations.
Performance Metrics
Total US Locations
34
Franchised Units
30
Corporate Units
4
Avg Square Footage
600
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
6
Litigation Summary
Exit Factor itself has no direct litigation to report. However, its affiliate companies within the United Franchise Group have had some legal history. In an older case, an affiliate, Signarama, was involved in a 1993 FTC lawsuit that resulted in a 1998 injunction prohibiting misrepresentations of sales and profits, violations of franchise rules, and undisclosed transfer fees. Separately, in 1996, Signarama settled a Maryland consent order for selling four franchises without proper registration, which required them to offer rescission (though all franchisees stayed) and implement a compliance program. More recently, in August 2021, an affiliate, The Great Greek Franchising (TGG), entered into a California consent order for improperly removing a registration condition and collecting initial franchise fees prematurely. TGG paid a penalty, offered rescission to affected franchisees, and completed continuing education. In March 2022, TGG, Graze Craze Franchising (GCZ), and UFG Group (all affiliates) faced additional California consent orders. These alleged that they provided franchise information at a trade show without valid registration and made unauthorized financial performance representations. They each paid an administrative penalty and agreed to contract an independent monitor for up to three years to assist with sales policies and procedures, which indicates ongoing monitoring related to these matters.
Bankruptcy History
Exit Factor has no bankruptcy history to report for itself or its key personnel.
Agreement Terms
Initial Term
35 years
Renewal Term
35 years
Renewal Conditions
To renew, Exit Factor franchisees must provide notice of their intent to renew, be in compliance with their Franchise Agreement, sign a new Franchise Agreement which may have different terms, pay a $1,500 renewal fee, and sign general releases.
Training & Support Program
Franchisor Assistance
Before opening, Exit Factor provides initial training at its corporate headquarters in West Palm Beach, Florida, including transportation, hotel, and one daily meal. It also provides 24 hours of on-site launch support within 90 days of training to assist with business initiation and initial marketing. Franchisees also receive the Software and Supplies Package, a recommended bookkeeping system (including one year of QuickBooks Online), and a detailed Operating Manual and other reference materials. On an ongoing basis, Exit Factor continuously researches and develops system improvements, updating the Operating Manual accordingly. It also hosts periodic (optional) conventions for franchisees, inviting vendors and offering seminars on operations and promotion. Exit Factor continuously seeks and enters into referral agreements for its franchisees and provides a corporate newsletter and bulletins on sales, marketing, and operating procedures. Franchisees also receive continual advice and support via telephone, email, and the Internet.
Initial Training Hours
52
Training Location
Corporate headquarters in West Palm Beach, Florida
Ongoing Support
After opening, Exit Factor provides continuous support by researching and developing system improvements and updating the Operating Manual. It holds periodic conventions for franchisees, inviting vendors and conducting seminars on topics related to ongoing training and business improvement, though attendance is not mandatory. Exit Factor continually solicits and establishes referral agreements for franchisees. The company also sends out a corporate newsletter and bulletins on sales methods, marketing development, and business operating procedures. Additionally, Exit Factor offers ongoing advice and support through telephone, email, and the Internet. Franchisees are required to send any new consultants they hire to a five-day training class at Exit Factor's headquarters, which also includes three follow-up virtual sessions, for a fee.
Franchise Requirements
Ideal Candidate Profile
Exit Factor seeks individuals with a strong commitment to business operation and growth. Ideal Exit Factor franchisees include honorably discharged United States military veterans, current owners in good standing of other United Franchise Group brands, or individuals who own an existing business consulting business that has been in operation for a minimum of two years and serves at least ten active clients. Whether an individual or a business entity, the franchisee or a fully trained manager must dedicate full-time and best efforts to managing and operating the Exit Factor business. Candidates should be diligent in promoting the business, capable of establishing and maintaining high service standards, and able to manage competent, conscientious, and trained staff. They must also agree to uphold confidentiality regarding trade secrets and proprietary information.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
2
Operational Details
Location Type
commercial
Owner Participation
supervisory
Territory Type
exclusive
Staff Count
2
Territory Size Requirements
Each Exit Factor franchise operates within a Designated Marketing Area, which is a geographic area defined and named by Exit Factor and must contain 8,000 or more registered businesses. The franchisee's business activities, including meetings, conferences, community service, and educational programs, must be confined to this area. While unsolicited clients from outside the area can be accepted, marketing activities must be restricted to individuals and businesses within the Designated Marketing Area. The continuation of this exclusive territory is conditional upon the franchisee acquiring a minimum of one client every 12 months after the first 12 months of operation; failure to meet this requirement may result in the loss of exclusivity.
Staffing Notes
If an Exit Factor franchisee chooses not to work full-time in their business, they are required to hire a full-time manager before starting operations. The Exit Factor business must always be under the direct supervision of someone who has completed the franchisor's training program. Franchisees are also expected to maintain a competent, conscientious, neat, and trained staff. All managers and consultants must sign a confidentiality and nondisclosure agreement, agreeing to keep trade secrets confidential and abide by non-compete covenants for two years after their employment ends. Additionally, all new consultants hired by a franchisee are required to attend a five-day training class at Exit Factor's headquarters, along with three virtual follow-up sessions, with the franchisee responsible for the training fee and expenses.