If an individual beneficiary is designated under the Exit Beneficiary Program, when do the Sponsoring Bonuses end?
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 in the Exit system designates an individual as a beneficiary to receive Sponsoring Bonuses, those bonuses will end upon the death of the designated beneficiary. This is part of the Exit Beneficiary Program, which allows Sponsors to pass on their Sponsoring Bonuses after they die.
It is important to note that the beneficiary designation must be made in writing using documentation provided or approved by Exit and must be delivered to Exit before the Sponsor's death. The beneficiary can be an individual or a trust. If no beneficiary is designated, the Sponsoring Bonuses will end upon the death of the Sponsor.
Upon the death of a Sponsor, the Sponsoring Bonuses payable to the designated beneficiary 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, or to the Franchise for whom the Sponsor worked at the time of death, or to the Subfranchise if the Franchise no longer exists. This ensures that even after the Sponsor's death, a portion of the bonus continues to support the Exit system.