What is the dependency between closing Transaction Sides and Sponsoring Bonus levels for Exit Associates?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
b) If the EXIT Associate does not close a minimum of eight Transaction Sides or earn at least $40,000 in gross closed Commissions per calendar year (pro-rated in the first year and extended as noted in Section 10.a) above for those EXIT Associates who join after October 1st), the EXIT Associate shall be designated "part-time" for the following calendar year. (This minimum sales production does not apply to Franchisees or Subfranchisors.)
e) The Sponsoring Bonus will be restored to the 10% level immediately upon the finalization of the 8th Transaction Side or $40,000 in gross closed Commissions in the current calendar year by the Sales Representative.
Restoration is not retroactive.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, an Exit Associate's Sponsoring Bonus level is directly tied to their real estate sales performance, specifically the number of transaction sides closed or gross closed commissions earned.
Exit Associates are automatically eligible to receive Sponsoring Bonuses at a rate of 10% until December 31st of the year they join Exit. For those who join after October 1st, this 10% eligibility extends to the end of the joining year and the entire following year. However, to maintain this 10% Sponsoring Bonus in subsequent years, an Exit Associate must close a minimum of eight Transaction Sides or earn at least $40,000 in gross closed Commissions per calendar year. This requirement is pro-rated in the first year and extended for those joining after October 1st.
If an Exit Associate does not meet the minimum sales production of eight Transaction Sides or $40,000 in gross closed Commissions, they are designated "part-time" for the following calendar year. This designation results in a reduction of their Sponsoring Bonuses from 10% to 7% of the gross commissions generated by their recruits, with a maximum of $7,000 per recruit per calendar year, less Sponsoring Bonus Fees. The good news is that the Sponsoring Bonus can be restored to the 10% level immediately upon the finalization of the 8th Transaction Side or $40,000 in gross closed Commissions in the current calendar year. It is important to note that this restoration is not retroactive.