What is the definition of 'Sponsoring' within the Exit system?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee. The maximum Company Development Fee per calendar year per Sales Representative is $10,000 (pro-rated in the first calendar year).
- b) The Company Development Fee shall be paid by Franchise to EXIT at the finalization of each Transaction Side via electronic funds transfer. All Company Development Fees shall be deposited into a designated trust account by EXIT upon receipt.
- c) All Commissions of $250.00 or less, are not subject to Company Development Fees.
9. Sponsoring Bonus
- a) The introduction of a person ("Recruit") to the EXIT System, who is subsequently hired by a Franchise as an EXIT Associate, is a process known as "Sponsoring."
- b) Franchisees control the actual hiring of Sales Representatives. Every effort should be made by Franchisees to develop a high-quality sales force to assist the public in the sale and purchase of real estate in an ethical and business-like manner. The Sponsoring process is intended to assist Franchisees in attracting this type of high-quality work force.
- c) A Sponsoring Bonus is paid to the person or persons responsible for the introduction that results in the recruitment of a new Sales Representative into the EXIT System (the "Sponsor"). Each EXIT Associate is eligible to receive a Sponsoring Bonus for Sponsoring equal to 10% of the gross Commissions generated by the Recruit.
- d) All non-licensed persons under written contract with a Franchisee, a Subfranchisor or EXIT are required to virtually attend and successfully complete EXIT's E-Boss online training course before being eligible to participate in EXIT's Sponsoring program.
- e) The Sponsoring Bonus is paid by EXIT up to a maximum of $10,000 per Recruit per calendar year (pro-rated in the first calendar year), less applicable Sponsoring Bonus Fees (defined in subsection 9.m) below).
- f) It is mandatory that each Sales Representative be sponsored into the EXIT System.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, 'Sponsoring' is defined as the process of introducing a person to the Exit System who is subsequently hired by a franchise as an Exit Associate. The document clarifies that franchisees are responsible for the actual hiring of sales representatives and should aim to develop a high-quality sales force. The sponsoring process is designed to assist franchisees in attracting this type of workforce.
Exit pays a Sponsoring Bonus to the person responsible for introducing a new sales representative into the Exit System. This person is known as the 'Sponsor'. Each Exit Associate is eligible to receive a Sponsoring Bonus for Sponsoring, which is equal to 10% of the gross commissions generated by the recruit.
It is mandatory for each sales representative to be sponsored into the Exit System, and sales representatives cannot sponsor themselves or each other. The sponsorship must be acknowledged and verified by each recruit through Exit's online 'Exit Associate Profile'. In cases where a recruit is introduced by two sponsors, the Sponsoring Bonus will be split evenly between them, with a maximum of two sponsors per recruit. Exit franchises may also be designated as a Sponsor for a Recruit.