What is the dependency between gross closed commissions and the sponsoring bonus for Exit associates?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
d in 9(q), then the EXIT Franchise that held the Sponsor's license, or employed the Sponsor at the time of departure, will immediately become the Sponsor or, if the Franchise no longer exists, the Subfranchise of that Franchise will become the Sponsor.
- s) Should a former EXIT Associate return to the EXIT System after an absence of more than two years, the returning EXIT Associate will be processed as a new EXIT Associate.
10. EXIT Part-time and Retirement Program
- a) All EXIT Associates are automatically eligible to receive Sponsoring Bonuses at the rate of 10% until December 31st of the year in which the EXIT Associate joins EXIT. For those EXIT Associates who join after October 1st, the 10% eligibility will continue for the remainder of the calendar year in which the EXIT Associate joins EXIT, and for the entire calendar year following.
- 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.)
- c) An EXIT Associate may "retire" from the real estate business entirely and continue to receive Sponsoring Bonuses by signing an Affidavit stating that they will not work in any capacity for a competing real estate company.
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 is directly tied to their gross closed commissions. All 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 joining after October 1st, this 10% eligibility extends through the end of that year and the entire following calendar year.
However, if an Exit Associate does not close a minimum of eight transaction sides or earn at least $40,000 in gross closed commissions per calendar year (with pro-rating in the first year and extensions for those joining after October 1st), they will be designated as "part-time" for the following calendar year. This minimum sales production requirement does not apply to Franchisees or Subfranchisors.
If an Exit Associate becomes part-time or retires, their sponsoring bonuses are reduced 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 sponsoring bonus can be restored to the 10% level if the sales representative finalizes their 8th transaction side or reaches $40,000 in gross closed commissions within the current calendar year, although this restoration is not retroactive.