factual

What condition must be met before Exit pays the Sponsoring Bonus?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

  • j) The Sponsoring Bonus is paid by EXIT after the Company Development Fee designated for the same Recruit is received by EXIT.

If funds are received electronically the bonus is typically paid out within seven days.

In the rare event that the Company Development Fee is not received electronically, or the associate has not elected to receive the Sponsoring Bonus electronically, the corresponding Sponsoring Bonus will be paid out within 30 days.

Source: Item 23 — RECEIPT (FDD pages 42–235)

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, the Sponsoring Bonus is contingent upon Exit receiving the Company Development Fee for the Recruit in question. Specifically, Exit, as the franchisor, is responsible for paying all Sponsoring Bonuses throughout the entire Exit system. These bonuses are typically disbursed via electronic funds transfer to the Sponsor.

If the Company Development Fee is received electronically, Exit typically pays the Sponsoring Bonus within seven days. However, if the Company Development Fee is not received electronically, or if the associate has not elected to receive the Sponsoring Bonus electronically, the corresponding Sponsoring Bonus will be paid out within 30 days.

It's important to note that Sponsoring Bonuses are calculated and paid out in the currency of the country where the transaction is finalized. Additionally, each Sponsoring Bonus is subject to a Sponsoring Bonus Fee of 10% of the Sponsoring Bonus per Transaction Side, with a maximum of $75 per Transaction Side. This fee is deducted by Exit before the Sponsoring Bonus is disbursed.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.