factual

Who pays the Transaction Fees to Subfranchise and Exit?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

c) Referrals

All Transaction Fees that pertain to referral Commissions shall be treated in the same manner as all transactions except in the case of referrals between EXIT offices. The Transaction Fees that pertain to referral Commissions between EXIT offices shall be split in direct proportion to the percentage of Commission earned. For example, the

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

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, transaction fees are paid by the Franchisee to the Subfranchisor and Exit. These fees are due when each transaction is finalized. The transaction fees are deducted from the Sales Representative's commission.

Every sale or lease has two transaction sides: a selling side and a buying side. Each side is subject to transaction fees, which are paid to Exit immediately after the transaction is finalized. The amount of the transaction fee depends on the gross commission earned by the franchise. For example, if the gross commission is between $250.01 and $2,500, the transaction fee is $50. If the gross commission is over $25,000, the transaction fee is $400.

For commissions paid in installments, the transaction fees are calculated for each installment separately. In cases of referrals between Exit offices, the transaction fees are split in direct proportion to the commission earned. For example, if an office receives 25% of the commission, it pays 25% of the transaction fee. All commissions must be entered into MEMO and will be subject to transaction fees unless the gross revenue is $250.00 or less.

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.