When are commission payments due to Sales Representatives from an Exit franchise?
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. The Agreement will automatically be renewed for further periods of 1 year, unless terminated in writing by either party at least 60 days before the end of the term in effect. Upon renewal, the Renewal Form attached as Schedule 3 to this Agreement, or the most current Renewal Form, if it has been amended since the date of this Agreement, shall be completed by both parties
- b) Termination Without Cause.
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 Sales Representatives in a timely fashion directly from the trust account. These payments are related to the Transaction Record Sheet completed when the transaction closes.
However, Exit can deduct any debts owed to Exit from these commission payments, as outlined in the agreement and the Exit Formula. Additionally, Regional Development Fees are deducted from the Sales Representative's portion of the commission and are payable at the finalization of the Transaction Side. All commissions are to be entered into MEMO, Exit's proprietary software program.
If a transaction involves a referral fee payable to another Sales Representative, all relevant data must be submitted to the Exit franchise before the Transaction Record Sheet is finalized. This ensures proper allocation and payment of commissions. Franchisees must accurately report all transactions where they or their agents/sales representatives receive a commission, including rentals, leases, and sales, and remit transaction fees and other continuing fees promptly.