What documentation is required for Exit referrals?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
13. The EXIT Referral System
- a) It is recommended that the Commission split for EXIT referrals remain uniform. The standard rate of Commission to be paid for an EXIT listing referral is 40% of the listing Commission received. The standard rate of Commission to be paid for an EXIT buyer referral is 25% of the selling Commission received. All referrals must be confirmed in writing on documentation supplied or approved by EXIT.
- b) Should a transaction be a referral whereby a portion of the Commission is payable on closing to another Sales Representative, then all pertinent data must be submitted to the Franchise prior to the finalization of the Transaction Record Sheet.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, all referrals must be confirmed in writing on documentation supplied or approved by Exit. If a transaction is a referral where a portion of the commission is payable to another Sales Representative upon closing, all pertinent data must be submitted to the Franchise before the Transaction Record Sheet is finalized.
This means that Exit franchisees must use specific documentation, either provided by Exit or approved by them, to confirm any referral agreements in writing. This ensures that all parties are aware of the terms of the referral, including commission splits.
For franchisees, this requirement ensures transparency and helps avoid disputes regarding referral fees. It also ensures that Exit maintains control over the referral process and that all transactions are properly documented. Franchisees should ensure they understand what constitutes 'pertinent data' and the process for submitting it to avoid delays in finalizing transaction records.