Who should be named the Sponsor by Exit if no Sponsor has been provided and acknowledged by the Recruit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
The Sponsoring Bonus Fee is deducted by EXIT prior to disbursement of the Sponsoring Bonus.
- n) The Franchise with whom the Recruit is registered should be named the Sponsor if no Sponsor has been provided and acknowledged, in writing, by the Recruit.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, if a Recruit does not provide and acknowledge a Sponsor in writing, the Exit Franchise with whom the Recruit is registered should be named as the Sponsor. This ensures that every Recruit is associated with a sponsoring entity within the Exit system, which is mandatory.
This policy is important for maintaining the integrity of Exit's sponsoring bonus program. The sponsoring bonus is a key component of Exit's recruitment strategy, offering a bonus to those who bring new sales representatives into the system. By ensuring that every Recruit has a Sponsor, Exit can properly track and distribute these bonuses.
For a prospective Exit franchisee, this means that if they register a Recruit who hasn't specified a Sponsor, the franchisee's Exit Franchise will automatically be designated as the Sponsor. This allows the franchisee to receive any applicable sponsoring bonuses associated with that Recruit's performance. It is important for franchisees to understand this process to maximize their potential earnings from the sponsoring program.
Franchisees should also ensure that all Recruits are properly registered and that the sponsorship is acknowledged in writing to avoid any confusion or disputes over sponsoring bonuses. This helps maintain transparency and fairness within the Exit system.