If the Exit associate designates a trust as their beneficiary, what information about the trust is required?
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, Exit sponsors can designate a beneficiary to receive Sponsoring Bonuses after their death. This beneficiary can be either an individual or a trust. The designation must be in writing, using documentation supplied or approved by Exit, and it must be delivered to Exit before the sponsor's death. If no beneficiary is designated, the Sponsoring Bonuses will end upon the death of the sponsor. If an individual is named as the beneficiary, the Sponsoring Bonuses will end upon the death of that individual.
Upon the death of a sponsor, the Sponsoring Bonuses are paid to the designated beneficiary. These 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% is 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 funds go to the Subfranchise.
The FDD states that the beneficiary designation must be in writing on documentation supplied or approved by Exit. However, the FDD does not specify what particular information about the trust Exit requires in order to designate the trust as a beneficiary. A prospective franchisee should ask Exit directly what specific trust information is needed to complete the beneficiary designation documentation.