For Exit, what constitutes 'Commissions' in the context of revenue received through the Franchise?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
IT Associate Agreement is signed and upon the annual renewal date of July 1st. Payment shall be by electronic funds transfer or by Franchise's check. Annual Membership payable on the July 1st renewal date may also be paid online directly by EXIT associates by VISA® or MasterCard®. Personal checks will not be accepted.
- e) Any amount not paid by the seventh (7th) day after its due date shall be charged a late fee of $50.
5. Commissions
Commission is defined as all revenues received through the Franchise from its Sales Representatives' activities ("Commissions").
The standard Commission structure for a Sales Representative is as follows:
- a) 70% of the first $100,000 of all gross Commissions per calendar year (pro-rated in the first calendar year) earned an
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, 'Commissions' are defined as all revenues received by the franchise stemming from the activities of its sales representatives. The standard commission structure dictates how these revenues are distributed between the franchise and its sales representatives.
Specifically, for the first $100,000 of gross commissions earned and received by the Exit franchise per calendar year from a sales representative's transactions, the sales representative is paid 70%. This $100,000 threshold is pro-rated in the first calendar year of the sales representative's engagement. For any gross commissions exceeding $100,000 within the same calendar year, the sales representative's share increases to 90% for the remainder of the year.
This commission structure is a key element of the Exit franchise model, influencing both the franchise's revenue and the compensation of its sales team. Prospective franchisees should understand this structure thoroughly, as it directly impacts their financial planning and the incentives for sales representatives within their organization. Understanding how commissions are earned, distributed, and accounted for is crucial for managing the franchise's profitability and maintaining a competitive edge in the real estate market.