Can an Exit Franchise be designated as the Sponsor for a Recruit?

According to Exit's 2025 Franchise Disclosure Document, an Exit Franchise can be designated as the Sponsor for a Recruit. However, the document clarifies that this designation is specifically for awards recognition purposes only. In such cases, the Franchise Sponsor must name the individual(s) responsible for introducing the Recruit. This means that while the franchise itself can be recognized as the sponsor, the actual credit for the introduction goes to the individual within the franchise who made the introduction.

This distinction is important because all other Sponsoring Bonuses are payable to an individual Sponsor, unless that individual directs their bonuses elsewhere. This implies that the financial benefits of sponsoring, such as the Sponsoring Bonus, typically go to the individual who brought the Recruit into the Exit system, not the franchise entity itself. The Sponsoring Bonus can be up to $10,000 per Recruit per calendar year, less any applicable Sponsoring Bonus Fees.

For a prospective Exit franchisee, this means that while your franchise can receive recognition for sponsoring a Recruit, the financial rewards are generally directed to the individual within your franchise who is responsible for the recruitment. It is important to understand this distinction to properly incentivize and reward your team members for their recruitment efforts. Additionally, it is crucial to ensure that all sponsorships are acknowledged and verified by each Recruit through Exit's online "EXIT Associate Profile" to maintain transparency and compliance within the Exit system.