For Exit, when are commission payments due to the Sales Representative?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
resentative is responsible for uploading their professional photograph to the RC which will then feed to EXIT's public website. Sales Representatives are encouraged to create a biography on the RC. All content must be truthful and verifiable.
3. REMUNERATION
- a) Generally. As renumeration for services as an independent contractor, Sales Representative will be paid at the EXIT [Trade Name] standard commission rate of 70% on the first $100,000 of gross commission and 90% of the balance per calendar year, pro-rated in the first year in accordance with the Pro-rated Qualifications Guidelines chart attached as Schedule 2.
- b) Disbursement. Any monies received on account of commission by Sales Representative from any trade in real estate conducted by the Sales Representative, shall be held by EXIT [Trade Name] in trust and EXIT [Trade Name] shall disperse in a timely fashion directly to the Sales Representative commission due to the Sales Representative in connection with the Transaction Record Sheet completed at the time of closing the transaction.
- c) Deduction of Fees and Charges. Sales Representative irrevocably directs EXIT [Trade Name] to deduct from any commissions payable to Sales Representative, the amount of any indebtedness owed to EXIT [Trade Name] or EXIT, as outlined in this Agreement and the EXIT Formula.
4. TERM/TERMINATION
- a) Initial Term and Renewal. The term of this Agreement shall be for a period of 1 year from the date first written above.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit will disburse commissions to the Sales Representative in a timely fashion directly to the Sales Representative in connection with the Transaction Record Sheet completed at the time of closing the transaction. Any monies received on account of commission by Sales Representative from any trade in real estate conducted by the Sales Representative, shall be held by Exit in trust until disbursed.
However, Exit also deducts fees and charges from commissions payable to the Sales Representative. The Sales Representative irrevocably directs Exit to deduct any indebtedness owed to Exit as outlined in the agreement and the Exit Formula. Additionally, Regional Development Fees are payable at the finalization of the Transaction Side and are deducted from the Sales Representative's portion of Commission.
If the agreement is terminated before a transaction is closed, Exit may withhold 50% of the commission payable to the Sales Representative to cover outstanding expenses owed by the Sales Representative to Exit and to cover expenses incurred by Exit to complete the transaction. After the expenses are paid from the withheld amount, the balance is paid to the Sales Representative.