According to Exit Realty, what constitutes 'Sales Representatives'?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
2. Sales Representatives and EXIT Associates
Sales Representatives mean all licensed real estate salespersons and brokers performing services as an employee or independent contractor for an EXIT Franchise.
EXIT Associates mean all Subfranchisors, Franchisees, and Sales Representatives, as well as all non-licensed persons under written contract with a Franchise, Subfranchise or EXIT who have met the requirements outlined in section 9.d), below.
It is important that all EXIT Associates who maintain multiple roles within the EXIT System identify the role which represents their "primary" role, as described in Section 9.q) below, on appropriate EXIT documentation.
3. Effective Date
The Effective Date for Sales Representatives is defined as the date that (1) the Sales Representative's license is formally transferred under Franchise's Real Estate Broker's License, (2) the Sales Representative has executed a Sales Representative's Agreement which has been approved by EXIT, and (3) the EXIT Associate Profile (described in Section 9.f)) below) has been completed.
The Effective Date for all other EXIT Associates is defined as the date that (1) a written contract is executed with a Franchise, Subfranchise or EXIT, and (2) execution of the online EXIT Associate Profile.
The signing of the contract, the transfer of the real estate license and completion of the Associate Profile (see Section 9.f) below) are prerequisites to generate the remuneration package outlined in this document. EXIT Associates may not make use of the EXIT trade name or any other proprietary marks of EXIT, on business cards, signage or in any published media until these prerequisites have been met.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Sales Representatives are defined as licensed real estate salespersons and brokers. These individuals perform services for an Exit franchise either as employees or as independent contractors. This definition is part of the broader "Exit Formula" which outlines the relationships within the Exit Realty Corp. International franchise system.
This definition is important for prospective franchisees as it clarifies the roles within an Exit franchise. Understanding who qualifies as a Sales Representative helps in structuring the franchise's workforce and ensuring compliance with real estate regulations. It also highlights the flexibility Exit offers, allowing Sales Representatives to operate as either employees or independent contractors.
Furthermore, the FDD specifies the "Effective Date" for Sales Representatives, which is the date when (1) their license is formally transferred under the Franchise's Real Estate Broker's License, (2) they have executed a Sales Representative's Agreement approved by Exit, and (3) their Exit Associate Profile has been completed. Meeting these prerequisites is essential for Sales Representatives to receive remuneration and utilize Exit's trade name and proprietary marks. This ensures that all representatives are properly onboarded and compliant with Exit's standards before representing the brand.
In summary, Exit defines Sales Representatives as licensed real estate professionals working under an Exit franchise, with specific requirements for their engagement and effective start date. This clear definition helps maintain standards and ensures compliance within the Exit system.