When providing beneficiary information to Exit, how many beneficiaries are permitted?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
nchise that holds the contract for the part-time EXIT Associate.
- e) The Sponsoring Bonus will be restored to the 10% level immediately upon the finalization of the 8th Transaction Side or $40,000 in gross closed Commissions in the current calendar year by the Sales Representative. Restoration is not retroactive.
- f) A retired or part-time EXIT Associate may continue to sponsor more Recruits into the EXIT System.
11. EXIT Beneficiary Program
| Initial |
|---|
- a) Sponsors may select a beneficiary to receive the Sponsoring Bonuses upon the death of the Sponsor. Beneficiary designation shall be in writing on documentation supplied or approved by EXIT and must be delivered to EXIT prior to the Sponsor's death. The designated beneficiary may be an individual, or a trust. The Sponsoring Bonuses shall end upon the death of the Sponsor if a beneficiary has not been designated. If an individual beneficiary has been designated, the Sponsoring Bonuses shall end upon the death of the beneficiary.
- b) Upon the death of a Sponsor, the Sponsoring Bonuses shall be payable to the Sponsor's designated beneficiary and shall automatically be reduced from an amount equi
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a sponsor may designate one beneficiary to receive Sponsoring Bonuses upon their death. This beneficiary designation must be documented in writing using forms supplied or approved by Exit and submitted before the sponsor's death. The beneficiary can be either an individual or a trust.
If a beneficiary is designated, the Sponsoring Bonuses will be paid to them. However, the bonus amount will be reduced from 10% to 5% of the gross commissions generated by the recruit, with a maximum of $5,000 per recruit per calendar year, less Sponsoring Bonus Fees. The remaining 5% will be allocated to the "primary role" Franchise that held the Sponsor's license. If no beneficiary is designated, the Sponsoring Bonuses will cease upon the death of the sponsor. If the designated beneficiary is an individual, the Sponsoring Bonuses will end upon the death of that beneficiary.
It is important for prospective Exit franchisees to understand these stipulations regarding beneficiary designations, as they directly impact the distribution of Sponsoring Bonuses in the event of the sponsor's death. Ensuring that the beneficiary designation is properly documented and submitted to Exit is crucial to ensure the intended party receives the Sponsoring Bonuses.