What is the process called when someone introduces a person to the Exit System who is subsequently hired by a Franchise as an EXIT Associate?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
9. Sponsoring Bonus
- a) The introduction of a person ("Recruit") to the EXIT System, who is subsequently hired by a Franchise as an EXIT Associate, is a process known as "Sponsoring."
- b) Franchisees control the actual hiring of Sales Representatives. Every effort should be made by Franchisees to develop a high-quality sales force to assist the public in the sale and purchase of real estate in an ethical and business-like manner. The Sponsoring process is intended to assist Franchisees in attracting this type of high-quality work force.
- c) A Sponsoring Bonus is paid to the person or persons responsible for the introduction that results in the recruitment of a new Sales Representative into the EXIT System (the "Sponsor"). Each EXIT Associate is eligible to receive a Sponsoring Bonus for Sponsoring equal to 10% of the gross Commissions generated by the Recruit.
- d) All non-licensed persons under written contract with a Franchisee, a Subfranchisor or EXIT are required to virtually attend and successfully complete EXIT's E-Boss online training course before being eligible to participate in EXIT's Sponsoring program.
- e) The Sponsoring Bonus is paid by EXIT up to a maximum of $10,000 per Recruit per calendar year (pro-rated in the first calendar year), less applicable Sponsoring Bonus Fees (defined in subsection 9.m) below).
- f) It is mandatory that each Sales Representative be sponsored into the EXIT System. Sales Representatives cannot be designated as their own Sponsor nor can two Sales Representatives sponsor each other. The Sponsorship must be acknowledged and verified by each Recruit, in a manner satisfactory to EXIT via EXIT's online "EXIT Associate Profile".
- g) In the event that a Recruit is introduced to the EXIT System by two Sponsors, then the Sponsoring Bonus will be split evenly between the Sponsors. A Recruit cannot be sponsored into the EXIT System by more than two Sponsors.
- h) EXIT Franchises may be designated as the Sponsor for a Recruit. (For the purposes of awards recognition only, the Franchise Sponsor shall name the individual(s) responsible for the introduction of the Recruit.) All other Sponsoring Bonuses will be payable to an individual Sponsor, unless the Sponsor signs a direction that their Sponsoring Bonuses be
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the process of introducing a person to the Exit System, who is then hired by a franchise as an Exit Associate, is known as "Sponsoring." Franchisees are responsible for the actual hiring of sales representatives and are encouraged to develop a high-quality sales force. The sponsoring process is designed to help franchisees attract this type of workforce.
When a new sales representative is recruited into the Exit System through sponsoring, the person responsible for the introduction, known as the "Sponsor," may be eligible for a Sponsoring Bonus. This bonus is equivalent to 10% of the gross commissions generated by the recruit. However, all non-licensed individuals under contract with a franchisee, subfranchisor, or Exit must complete Exit's E-Boss online training course to participate in the sponsoring program.
The Sponsoring Bonus is paid by Exit up to a maximum of $10,000 per recruit per calendar year, with potential adjustments for Sponsoring Bonus Fees. Each sales representative must be sponsored into the Exit System, and they cannot sponsor themselves or each other. The sponsorship must be acknowledged and verified by the recruit through Exit's online "EXIT Associate Profile". If a recruit is introduced by two sponsors, the Sponsoring Bonus will be split evenly between them, but a recruit cannot have more than two sponsors. Exit franchises can also be designated as sponsors for a recruit, with individual recognition given to those responsible for the introduction.