What is the condition regarding referral fees and commission shares paid by Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
on pertaining to license transfers for recruitment and termination of EXIT Associates and all current information pertaining to retired EXIT Associates (collectively, "Business Information") will be transmitted to EXIT by Franchise immediately upon execution, via a specified computer reporting system made available by EXIT currently known as MEMO. The payment details entered into the MEMO system must agree with the payment details that are reported to government tax agencies.
13. The EXIT Referral System
- a) It is recommended that the Commission split for EXIT referrals remain uniform. The standard rate of Commission to be paid for an EXIT listing referral is 40% of the listing Commission received. The standard rate of Commission to be paid for an EXIT buyer referral is 25% of the selling Commission received. All referrals must be confirmed in writing on documentation supplied or approved by EXIT.
- b) Should a transaction be a referral whereby a portion of the Commission is payable on closing to another Sales Representative, then all pertinent data must be submitted to the Franchise prior to the finalization of the Transaction Record Sheet.
14. Non-competition
As a condition to receiving Sponsoring Bonuses, the EXIT Associate shall not work (directly or indirectly) for any business that is in any way competitive with the business conducted by EXIT or EXIT Franchise, as determined in the sole discretion of EXIT.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the standard commission rate for an Exit listing referral is 40% of the listing commission received. For an Exit buyer referral, the standard rate is 25% of the selling commission received. All referrals must be confirmed in writing using documentation supplied or approved by Exit.
If a transaction involves a referral where a portion of the commission is payable to another Sales Representative upon closing, all relevant data must be submitted to the Franchise before the Transaction Record Sheet is finalized.
Regional Development Fees for referral commissions between Exit offices are split in direct proportion to the percentage of commission earned. For example, an office receiving 25% of the commission side pays 25% of the Regional Development Fee. All payments of referral fees and commission shares must comply with applicable laws and are made by Exit, with the funds withheld from commissions received by Exit.