From what portion of the commission are the Transaction Fees to Exit deducted?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Transaction Fees are payable by Franchise to Subfranchise and EXIT. Transaction Fees are payable at the finalization of the Transaction Side and are deducted from the Sales Representative's portion of the Commission.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, transaction fees are deducted from the sales representative's portion of the commission. These fees are payable by the franchisee to the subfranchisee and Exit at the finalization of the transaction.
This means that when a sales representative within an Exit franchise closes a deal, a portion of their commission will be allocated to cover these transaction fees. The specific amount of the transaction fee depends on the gross commission generated by the transaction side, with fees ranging from $50 to $400, as detailed elsewhere in the FDD.
It's important for prospective franchisees to understand this fee structure, as it directly impacts the earnings of their sales representatives. Franchisees should ensure they clearly communicate this to their agents to avoid any misunderstandings. The FDD also mentions a maximum transaction fee of $2,700 per sales representative per calendar year, which could be a beneficial factor for high-performing agents.