What is the effect of Sponsoring Bonus Fees on the Sponsoring Bonus paid by Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
oring Bonus electronically, the corresponding Sponsoring Bonus will be paid out within 30 days.
- k) Sponsoring Bonuses are calculated and paid out in the currency of the country in which the transaction is finalized.
- l) Sponsoring Bonuses are not part of any transaction record sheet and do not pertain to any trade or sale of real estate. Sponsoring Bonuses are never paid by Subfranchisors, Franchisees or Sales Representatives. This is the full responsibility of EXIT.
- m) Each Sponsoring Bonus is subject to a Sponsoring Bonus Fee of 10% of the Sponsoring Bonus per Transaction Side to a maximum of $75 per Transaction Side. Sponsoring Bonus Fees for referrals between EXIT Offices will be pro-rated in the same manner as outlined in Sectio
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Sponsoring Bonus Fee directly reduces the amount of the Sponsoring Bonus that is disbursed to the sponsor. Specifically, each Sponsoring Bonus is subject to a Sponsoring Bonus Fee of 10% of the Sponsoring Bonus per Transaction Side, with a maximum fee of $75 per Transaction Side. This fee is deducted by Exit before the Sponsoring Bonus is paid out.
For a prospective Exit franchisee, this means that the actual Sponsoring Bonus received will be less than the initially calculated amount due to the deduction of the Sponsoring Bonus Fee. The fee is applied to each transaction side, potentially increasing the total deduction if multiple transaction sides are involved. However, the Sponsoring Bonus Fee will cease each calendar year once the sponsored Sales Representative generates $100,000 of gross Commissions for their Franchise(s) in that calendar year, with this amount being pro-rated in the first calendar year.
It's also important to note that Sponsoring Bonus Fees for referrals between Exit Offices are pro-rated as outlined in Section 6.c). Additionally, in the event of the death of the Sponsor, an additional administration fee of $35 will be deducted from each Sponsoring Bonus prior to disbursement. Understanding these deductions is crucial for accurately forecasting potential income from Sponsoring Bonuses within the Exit system.