Who is eligible to receive a Sponsoring Bonus in the Exit system?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee. The maximum Company Development Fee per calendar year per Sales Representative is $10,000 (pro-rated in the first calendar year).
- b) The Company Development Fee shall be paid by Franchise to EXIT at the finalization of each Transaction Side via electronic funds transfer. All Company Development Fees shall be deposited into a designated trust account by EXIT upon receipt.
- c) All Commissions of $250.00 or less, are not subject to Company Development Fees.
9. Sponsoring Bonus
- a) The introduction of a person ("Recruit") to the EXIT System, who is subsequently hired by a Franchise as an EXIT Associate, is a process known as "Sponsoring."
- b) Franchisees control the actual hiring of Sales Representatives. Every effort should be made by Franchisees to develop a high-quality sales force to assist the public in the sale and purchase of real estate in an ethical and business-like manner. The Sponsoring process is intended to assist Franchisees in attracting this type of high-quality work force.
- c) A Sponsoring Bonus is paid to the person or persons responsible for the introduction that results in the recruitment of a new Sales Representative into the EXIT System (the "Sponsor"). Each EXIT Associate is eligible to receive a Sponsoring Bonus for Sponsoring equal to 10% of the gross Commissions generated by the Recruit.
- d) All non-licensed persons under written contract with a Franchisee, a Subfranchisor or EXIT are required to virtually attend and successfully complete EXIT's E-Boss online training course before being eligible to participate in EXIT's Sponsoring program.
- e) The Sponsoring Bonus is paid by EXIT up to a maximum of $10,000 per Recruit per calendar year (pro-rated in the first calendar year), less applicable Sponsoring Bonus Fees (defined in subsection 9.m) below).
- f) It is mandatory that each Sales Representative be sponsored into the EXIT System. Sales Representatives cannot be designated as their own Sponsor nor can two Sales Representatives sponsor each other. The Sponsorship must be acknowledged and verified by each Recruit, in a manner satisfactory to EXIT via EXIT's online "EXIT Associate Profile".
- g) In the event that a Recruit is introduced to the EXIT System by two Sponsors, then the Sponsoring Bonus will be split evenly between the Sponsors. A Recruit cannot be sponsored into the EXIT System by more than two Sponsors.
- h) EXIT Franchises may be designated as the Sponsor for a Recruit. (For the purposes of awards recognition only, the Franchise Sponsor shall name the individual(s) responsible for the introduction of the Recruit.) All other Sponsoring Bonuses will be payable to an individual Sponsor, unless the Sponsor signs a direction that their Sponsoring Bonuses be
| Initial |
|---|
paid to a U.S. or Canadian legal entity of which they (including the interests of their spouse) owns the controlling voting and equity interests.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, several individuals and entities are eligible to receive Sponsoring Bonuses. Generally, the person responsible for introducing a new sales representative (a "Recruit") to the Exit system, who is subsequently hired by a Franchise as an Exit Associate, is known as the "Sponsor" and is eligible for a Sponsoring Bonus. Each Exit Associate is eligible to receive a Sponsoring Bonus for Sponsoring equal to 10% of the gross Commissions generated by the Recruit.
Specifically, Exit Franchises can be designated as the Sponsor for a Recruit. If a Recruit is introduced by two Sponsors, the bonus is split evenly between them. If a Recruit returns to the Exit system within two years of departure, the original Sponsor is entitled to the bonus upon reinstatement. If that original Sponsor is no longer with Exit, the Exit Franchise that held the Sponsor's license becomes the Sponsor.
Additionally, all Exit Associates are automatically eligible to receive Sponsoring Bonuses at a 10% rate until December 31st of the year they join Exit, with a provision to extend this eligibility for those joining after October 1st. Even an Exit Associate who has "retired" from the real estate business may continue to receive Sponsoring Bonuses, provided they sign an affidavit agreeing not to work for a competing real estate company. Non-licensed persons under written contract with a Franchisee, a Subfranchisor or EXIT are required to virtually attend and successfully complete EXIT's E-Boss online training course before being eligible to participate in EXIT's Sponsoring program.