factual

What is the payout timeframe for Exit Sponsoring Bonuses when funds are not received electronically?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

If funds are received electronically the bonus is typically paid out within seven days.

In the rare event that the Company Development Fee is not received electronically, or the associate has not elected to receive the Sponsoring Bonus electronically, the corresponding Sponsoring Bonus will be paid out within 30 days.

Source: Item 23 — RECEIPT (FDD pages 42–235)

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, Sponsoring Bonuses are typically paid via electronic funds transfer within seven days when the Company Development Fee is received electronically. However, in situations where the Company Development Fee is not received electronically, or if an associate has not elected to receive their Sponsoring Bonus electronically, the payout timeframe extends to within 30 days.

This means that as an Exit franchisee, you can expect a longer waiting period for Sponsoring Bonuses if the associated Company Development Fee is not processed electronically or if the associate prefers a non-electronic payment method. This could impact your cash flow and financial planning, as the bonus payment will not be as immediate as with electronic transfers.

It's important to note that Exit, as the franchisor, is responsible for the payment of all Sponsoring Bonuses throughout the Exit system. This ensures consistency and centralized control over bonus payouts. Franchisees should be aware of these timelines and communicate them effectively to their associates to manage expectations regarding bonus payments.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.