Are commissions of $250.00 or less subject to Exit's Company Development Fees?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
enue is $2,500.00 or less.
e) Payment
EXIT Formula (U.S. Version Rev. 03.23.25)
Regional Development Fees are payable by Franchise to EXIT. Regional Development Fees are payable at the finalization of the Transaction Side and are deducted from the Sales Representative's portion of Commission.
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The maximum Regional Development Fees paid per calendar year per Sales Representative is $500 (pro-rated in the first calendar year).
8. Company Development Fee
- a) Franchise shall pay EXIT a Company Development Fee of ten percent (10%) of the first $100,000 of gross Commissions per calendar year earned and received by the Franchise for transactions generated by each Sales Representative, including the Broker and
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, commissions of $250.00 or less are not subject to Company Development Fees. The franchise agreement stipulates that Exit franchisees are required to pay a Company Development Fee, which is calculated as ten percent (10%) of the first $100,000 of gross commissions earned per calendar year by each sales representative. The maximum Company Development Fee per sales representative per calendar year is $10,000.
This fee is paid to Exit at the finalization of each transaction via electronic funds transfer and is deposited into a designated trust account. This fee structure incentivizes Exit franchisees to support their sales representatives in generating higher commission revenues, as the fee is capped at $10,000 per sales representative annually.
However, the exclusion of commissions of $250.00 or less from the Company Development Fee provides a small benefit to franchisees and sales representatives dealing with very small transactions. This exemption could reduce the administrative burden associated with tracking and paying the Company Development Fee on minimal commission amounts.