According to the Exit Realty FDD, what is the definition of a 'Sales Representative'?

According to Exit's 2025 Franchise Disclosure Document, a 'Sales Representative' is defined as any individual who is licensed or authorized to sell real estate as an agent or broker of the Exit franchisee. This definition is important because several fees payable to Exit are calculated based on the number of sales representatives affiliated with a franchise, or on the gross commissions they generate.

For a prospective Exit franchisee, understanding this definition is crucial for budgeting and financial planning. Fees such as the Transaction Fee and the Company Development Fee are directly linked to the activities and commissions of each Sales Representative. The Transaction Fee ranges from $50 to $400 per transaction side, not to exceed $2,700 per year, per Sales Representative. The Company Development Fee is equivalent to 10% of the gross commissions generated per year by every Sales Representative, up to a maximum of $10,000 per calendar year for each Sales Representative.

Additionally, the Annual Membership fee of $425 is payable by each Exit Sales Representative. This fee is also applicable to individuals under written contract with a Franchisee or Subfranchisor to recruit sales representatives, and all officers, directors, and equity holders of Franchisees or Subfranchisors. Therefore, accurately classifying and accounting for all individuals who fall under the definition of 'Sales Representative' is essential for compliance and cost management within an Exit franchise.