What happens to the Exit Sponsoring Bonus if a beneficiary has been designated?
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
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- 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, if a Sponsor designates a beneficiary to receive Sponsoring Bonuses, the bonuses will be payable to that beneficiary upon the Sponsor's death. However, the Sponsoring Bonuses are automatically 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% of the Sponsoring Bonus 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% is paid to the Subfranchise.
If an individual beneficiary has been designated, the Sponsoring Bonuses will end upon the death of the beneficiary. It is important for prospective Exit franchisees to understand these conditions, as they directly impact the long-term financial benefits of sponsoring new recruits into the Exit system. Careful consideration should be given to beneficiary designations and their potential impact on bonus payouts.