For Exit, what documentation is required for a Sponsor to designate a beneficiary for Sponsoring Bonuses?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise that holds the contract for the part-time EXIT Associate.
- 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.
- f) A retired or part-time EXIT Associate may continue to sponsor more Recruits into the EXIT System.
11. EXIT Beneficiary Program
| Initial |
|---|
- a) Sponsors may select a beneficiary to receive the Sponsoring Bonuses upon the death of the Sponsor. Beneficiary designation shall be in writing on documentation supplied or approved by EXIT and must be delivered to EXIT prior to the Sponsor's death. The designated beneficiary may be an individual, or a trust. The Sponsoring Bonuses shall end upon the death of the Sponsor if a beneficiary has not been designated. If an individual beneficiary has been designated, the Sponsoring Bonuses shall end upon the death of the beneficiary.
- b) Upon the death of a Sponsor, the Sponsoring Bonuses shall be payable to the Sponsor's designated beneficiary and shall automatically be reduced from an amount equi
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a Sponsor can designate a beneficiary to receive Sponsoring Bonuses after their death. To do so, the Sponsor must provide written documentation to Exit, using forms supplied or approved by Exit, before the Sponsor's death. The beneficiary can be an individual or a trust. If a beneficiary is not designated, the Sponsoring Bonuses will end upon the Sponsor's death. If an individual is named as the beneficiary, the Sponsoring Bonuses will end upon the death of that beneficiary.
Upon the death of a Sponsor, if a beneficiary has been properly designated, the Sponsoring Bonuses will be paid to the beneficiary. However, the bonus amount will be reduced from 10% to 5% of the gross commissions generated by the Recruit, with a maximum of $5,000 per Recruit per calendar year, less Sponsoring Bonus Fees. The remaining 5% will be paid to the "primary role" Franchise that held the Sponsor's license. If the Sponsor was not a licensed Sales Representative, the remaining 5% goes to the Franchise for whom the Sponsor worked at the time of death. If that Franchise no longer exists, the remaining 5% goes to the Subfranchise.
This policy ensures that Sponsoring Bonuses can continue to provide income to a Sponsor's chosen beneficiary after their death, while also providing ongoing benefits to the Exit franchise system. The reduction in the bonus amount and the redirection of a portion of the bonus to the "primary role" Franchise or Subfranchise helps to maintain the financial stability and incentive structure within the Exit network. Prospective franchisees should ensure they understand the specific forms and procedures required by Exit for beneficiary designation to ensure their wishes are properly documented and executed.