Are commissions of $250.00 or less subject to Company Development Fees for an Exit franchise?
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. This means that Exit franchisees do not have to pay the 10% Company Development Fee on any individual commission earned by a sales representative that is $250.00 or less.
The Company Development Fee is calculated as 10% of the first $100,000 of gross commissions per calendar year earned by the franchise for transactions generated by each sales representative. The maximum Company Development Fee per sales representative is $10,000 per calendar year. This fee is paid by the franchisee to Exit at the finalization of each transaction side via electronic funds transfer and is deposited into a designated trust account by Exit upon receipt.
This exemption for smaller commissions could be beneficial for franchisees as it reduces the overall fees paid to Exit, particularly in situations where sales representatives frequently handle smaller transactions. It is important to note that while these smaller commissions are exempt from the Company Development Fee, other fees such as Regional Development Fees or Transaction Fees may still apply depending on the specific circumstances of the transaction and the agreements in place.