When is the Exit Company Development Fee paid by the Franchise to Exit?
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, the Company Development Fee is paid by the franchisee to Exit at the finalization of each transaction side via electronic funds transfer. This fee is equivalent to ten percent (10%) of the first $100,000 of gross commissions earned and received by the franchisee per calendar year for transactions generated by each sales representative, including the broker and franchisee. The maximum Company Development Fee per calendar year per sales representative is $10,000, and this is pro-rated in the first calendar year.
This means that as an Exit franchisee, you are responsible for remitting a portion of the commissions earned by your sales representatives to Exit as a Company Development Fee. This fee is calculated on a per-transaction basis and is due when each transaction is finalized. The fee is capped at $10,000 per sales representative per year, providing a limit to the amount Exit collects from each representative's commissions.
It's important to note that commissions of $250.00 or less are not subject to Company Development Fees. This provides a small buffer for very low-value transactions. All Company Development Fees are deposited into a designated trust account by Exit upon receipt, indicating a level of financial responsibility and segregation of these funds.