How is the $100,000 gross commission threshold for Sales Representative payments handled in the first calendar year for an Exit franchise?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
y Franchise's check. Annual Membership payable on the July 1st renewal date may also be paid online directly by EXIT associates by VISA® or MasterCard®. Personal checks will not be accepted.
- e) Any amount not paid by the seventh (7th) day after its due date shall be charged a late fee of $50.
5. Commissions
Commission is defined as all revenues received through the Franchise from its Sales Representatives' activities ("Commissions").
The standard Commission structure for a Sales Representative is as follows:
- a) 70% of the first $100,000 of all gross Commissions per calendar year (pro-rated in the first calendar year) earned an
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the $100,000 gross commission threshold for Sales Representatives is pro-rated in the first calendar year. This means that if a Sales Representative joins an Exit franchise partway through the year, the threshold is adjusted to reflect the portion of the year they were active.
Specifically, for the first $100,000 of gross commissions earned and received by the Exit franchise from transactions generated by a Sales Representative, the Sales Representative is paid 70%. Once the Sales Representative exceeds the pro-rated $100,000 threshold, they are paid 90% of all gross commissions for the remainder of the calendar year.
For a prospective Exit franchisee, this pro-rating of the commission threshold is beneficial because it allows new Sales Representatives to reach the higher commission tier more quickly in their first year, incentivizing them to generate more revenue for the franchise. This also ensures fairness, as the threshold is adjusted to reflect the actual time the Sales Representative has been active during the year.