What is the maximum sponsoring bonus fee that Exit charges per transaction side?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ectors and equity holders of Franchisees or Subfranchisors.
Note 5 From the Company Development Fees paid, EXIT pays the Sponsor responsible for the introduction and hiring of the Sales Representative, a sponsoring bonus equivalent to 10% of gross commissions generated per calendar year by such Sales Representative. Each sponsoring bonus is subject to a sponsoring bonus fee of 10% of the sponsoring bonus per transaction side in a residential transaction and per fee unit in an ICI transaction for a maximum of $75 per transaction side (there is an additional fee of $35 for death benefits). The sponsoring bonus is reduced to the equivalent of 7% of the gross commissions that are generated by a Sales Representative that has been sponsored into the EXIT System by a "part-time" or "retired" Sales Representative (the other 3% being paid to the primary role Franchisee holding the license of the Sponsor) and reduced to 5% upon the death of the sponsoring Sales Representative (the other 5% being paid to the primary role Franchisee that held
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit offers a sponsoring bonus to those who recruit sales representatives, which is equivalent to 10% of the gross commissions generated per calendar year by the recruited sales representative. However, this sponsoring bonus is subject to a fee.
The sponsoring bonus fee is 10% of the sponsoring bonus per transaction side for residential transactions and per fee unit for commercial transactions. The maximum sponsoring bonus fee is $75 per transaction side. There is an additional fee of $35 for death benefits.
It's important to note that the sponsoring bonus is reduced to 7% of the gross commissions for sales representatives sponsored by a "part-time" or "retired" sales representative, with the other 3% going to the primary role franchisee. Additionally, the bonus is reduced to 5% upon the death of the sponsoring sales representative, with the other 5% being paid to the primary role franchisee that held the license of the sponsor at the time of death.