factual

How does Exit calculate the Transaction Fee for each installment of a commission paid in installments?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

All Transaction Fees for Commissions on properties that are paid in installments, either before or after the closing date of the transaction, will be calculated in the same manner as noted in paragraph 6.a). For example, each installment of Commission will be entered into EXIT's computer reporting system separately and the Transaction Fee will be calculated using the same formula that is used for all transactions.

Source: Item 23 — RECEIPT (FDD pages 42–235)

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, when commissions are paid in installments, either before or after the closing date of a transaction, the transaction fees are calculated in the same manner as regular transactions. Each installment of the commission is entered separately into Exit's computer reporting system. The transaction fee is then calculated using the same formula applied to all transactions.

This means that for each commission installment received, Exit will assess a transaction fee based on the gross commission amount of that specific installment. This approach ensures that transaction fees are consistently applied across all commission payments, regardless of whether they are paid in a lump sum or in multiple installments.

For a prospective Exit franchisee, this implies that they need to account for transaction fees for each commission installment. The fees range from $50 to $400, depending on the commission bracket. This consistent application of transaction fees, even on partial commission payments, helps Exit maintain a predictable revenue stream and ensures that franchisees contribute to the network's operational costs with each transaction, no matter how the commission is paid out.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.