What is the dependency for Exit to pay the Sponsoring Bonus?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ponsoring Bonuses to more than one legal entity. Unless a beneficiary has been designated, as provided in Section 11(a) below, payment of the Sponsoring Bonuses to the redirected legal entity shall end upon the Sponsor's death.
- i) EXIT, as Franchisor, is responsible for the payment of all Sponsoring Bonuses throughout the entire EXIT System. Sponsoring Bonuses for all EXIT Associates will be made payable by electronic funds transfer (whenever possible) to the Sponsor.
- j) The Sponsoring Bonus is paid by EXIT after the Company Development Fee designated for the same Recruit is received by EXIT. If funds are received electronically the bonus is typically paid out within seven days.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the payment of the Sponsoring Bonus is contingent upon Exit receiving the Company Development Fee designated for the same Recruit. Once Exit receives this fee, the Sponsoring Bonus is triggered for payment. If the funds are transferred electronically, Exit typically pays the bonus within seven days.
However, if the Company Development Fee is not received electronically, or if the associate has not elected to receive the Sponsoring Bonus electronically, the payment timeframe extends to 30 days. This suggests that Exit prefers electronic transactions for quicker processing and disbursement of bonuses.
It's important to note that the Sponsoring Bonus is subject to a Sponsoring Bonus Fee, which is 10% of the Sponsoring Bonus per Transaction Side, with a maximum of $75 per Transaction Side. This fee is deducted by Exit before the Sponsoring Bonus is paid out. Additionally, Sponsoring Bonuses are calculated and paid out in the currency of the country where the transaction is finalized.