What happens to Sponsoring Bonuses if a Sponsor leaves the Exit System?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- q) In the event that a Sponsor leaves the EXIT System, the Sponsor loses all rights to any Sponsoring Bonuses, unless the Sponsor returns to the EXIT System within 30 days of departure.
For any Recruits the Sponsor sponsored into the EXIT System prior to the Sponsor's departure, the Sponsoring Bonuses accruing subsequent to the Sponsor's departure will be redirected to the primary role Franchise or Subfranchise most recently under written contract with the Sponsor for at least 90 days prior to the time of departure or, if the Franchise no longer exists, to the Subfranchise.
For purposes of the EXIT Formula, the "primary role" Franchise or Subfranchise will be designated by the Sponsor/EXIT Associate, if there is more than one role performed by the Sponsor.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a Sponsor who leaves the Exit System forfeits all rights to Sponsoring Bonuses unless they return within 30 days of their departure. If the Sponsor does not return within the 30-day window, any Sponsoring Bonuses that would have accrued after their departure will be redirected.
Specifically, these Sponsoring Bonuses will be paid to the "primary role" Franchise or Subfranchise that had a written contract with the Sponsor for at least 90 days before their departure. The Sponsor/Exit Associate designates the "primary role" if they hold multiple roles within the Exit system. If the Franchise no longer exists, the bonuses will be directed to the Subfranchise.
This policy ensures that Sponsoring Bonuses continue to be paid even when a Sponsor leaves Exit, providing ongoing incentives for recruitment within the Exit system. It also protects the interests of the Franchise or Subfranchise that supported the Sponsor prior to their departure, compensating them for their role in the Sponsor's activities.