For Exit franchises, what constitutes 'Commissions' in the context of Sales Representative activities?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
IT Associate Agreement is signed and upon the annual renewal date of July 1st. Payment shall be by electronic funds transfer or by Franchise's check. Annual Membership payable on the July 1st renewal date may also be paid online directly by EXIT associates by VISA® or MasterCard®. Personal checks will not be accepted.
- e) Any amount not paid by the seventh (7th) day after its due date shall be charged a late fee of $50.
5. Commissions
Commission is defined as all revenues received through the Franchise from its Sales Representatives' activities ("Commissions").
The standard Commission structure for a Sales Representative is as follows:
- a) 70% of the first $100,000 of all gross Commissions per calendar year (pro-rated in the first calendar year) earned an
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, 'Commissions' are defined as all revenues received through the franchise from its Sales Representatives' activities. This is a broad definition, encompassing all income generated by the sales representatives on behalf of the Exit franchise.
The standard commission structure for Exit sales representatives involves a split of commissions between the representative and the franchise. For the first $100,000 of gross commissions earned and received by the franchise per calendar year from a sales representative's transactions, the sales representative receives 70%. For any gross commissions exceeding $100,000 in a calendar year, the sales representative's share increases to 90%. This tiered structure is pro-rated in the first calendar year, meaning the $100,000 threshold is adjusted proportionally based on when the sales representative joined during the year.
This commission structure is a key element of the relationship between Exit franchisees and their sales representatives. It incentivizes representatives to generate higher sales volumes, as their share of the commission increases significantly once they surpass the $100,000 threshold. For franchisees, understanding this structure is crucial for managing their revenue expectations and ensuring fair compensation for their sales team. The franchise retains a portion of the commissions to cover operational costs and contribute to the overall profitability of the Exit franchise.