For the Exit Beneficiary Program, what documentation is required for beneficiary designation?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
- a) Sponsors may select a beneficiary to receive the Sponsoring Bonuses upon the death of the Sponsor. Beneficiary designation shall be in writing on documentation supplied or approved by EXIT and must be delivered to EXIT prior to the Sponsor's death. The designated beneficiary may be an individual, or a trust. The Sponsoring Bonuses shall end upon the death of the Sponsor if a beneficiary has not been designated. If an individual beneficiary has been designated, the Sponsoring Bonuses shall end upon the death of the beneficiary.
- b) Upon the death of a Sponsor, the Sponsoring Bonuses shall be payable to the Sponsor's designated beneficiary and shall automatically be reduced from an amount equivalent to 10% to 5% of the gross Commissions generated by the Recruit, to a maximum of $5,000 per Recruit per calendar year, less Sponsoring Bonus Fees (defined in Section 9.m) above). The remaining 5% shall be paid to the "primary role" Franchise that held the Sponsor's license or, if the Sponsor was not a licensed Sales Representative, to the Franchise for whom the Sponsor worked at the time of the Sponsor's death or, if the Franchise no longer exists, to the Subfranchise.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a sponsor can designate a beneficiary to receive Sponsoring Bonuses after their death. To do so, the beneficiary designation must be in writing on documentation supplied or approved by Exit. This documentation must be delivered to Exit before the sponsor's death.
The designated beneficiary can be an individual or a trust. If no beneficiary is designated, the Sponsoring Bonuses will end upon the sponsor's death. If an individual beneficiary is designated, the Sponsoring Bonuses will end upon the death of that beneficiary.
Upon the death of a sponsor, the Sponsoring Bonuses payable to the designated beneficiary will be reduced from 10% to 5% of the gross commissions generated by the recruit, with a maximum of $5,000 per recruit per calendar year, less Sponsoring Bonus Fees. The remaining 5% will be paid to the "primary role" Franchise that held the sponsor's license, or if the sponsor was not a licensed Sales Representative, to the Franchise for whom the sponsor worked at the time of death, or to the Subfranchise if the Franchise no longer exists.
It is important for prospective Exit franchisees to understand the specific documentation required by Exit for beneficiary designation to ensure their wishes are properly executed and to avoid any potential complications or loss of Sponsoring Bonuses after their death. Franchisees should contact Exit directly to obtain the necessary forms and instructions for beneficiary designation.