What is the maximum cumulative Company Development Fee for each Sales Representative per calendar year for an Exit franchise?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Company Development Fee5 | Equivalent to 10% of the gross commissions generated per year by every Sales Representative to a maximum cumulative fee of $10,000 per calendar year for each Sales Representative (pro-rated in the first calendar year). | At the time of closing of each sales/rental transaction. | Payable by you to EXIT by electronic funds transfer. |
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Company Development Fee is equivalent to 10% of the gross commissions generated per year by every Sales Representative. This fee contributes to a maximum cumulative fee of $10,000 per calendar year for each Sales Representative. The fee is pro-rated in the first calendar year.
This means that as an Exit franchisee, you will need to pay Exit a Company Development Fee for each of your sales representatives. This fee is calculated as 10% of the gross commissions that each sales representative generates throughout the year. However, the total amount you pay for each sales representative is capped at $10,000 per year. This fee is collected at the time of closing of each sales/rental transaction via electronic funds transfer.
For a new Exit franchise, the Company Development Fee is pro-rated in the first calendar year. This means that if the franchise opens partway through the year, the maximum fee of $10,000 per sales representative will be reduced proportionally. This pro-rating provides some financial relief during the initial startup phase. It is important to note that all fees are subject to change by Exit.