Who receives the 3% difference in Sponsoring Bonuses when an Exit Associate is 'part-time' or 'retired'?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ees or Subfranchisors.)
- c) An EXIT Associate may "retire" from the real estate business entirely and continue to receive Sponsoring Bonuses by signing an Affidavit stating that they will not work in any capacity for a competing real estate company. The EXIT Associate will continue to be affiliated with EXIT under the umbrella of the Franchise or Subfranchise that formerly held the EXIT Associate's license or contract, with the approval of the Franchisee or Subfranchise.
- d) If an EXIT Associate becomes "part-time" or "retires", any Sponsoring Bonuses payable to the EXIT Associate (Sponsor) shall automatically be reduced from the equivalent of 10% to 7% of the gross Commissions generated by the Recruit to a maximum of $7,000 per Recruit per calendar year, less Sponsoring Bonus Fees (defined in Section 9.m) above). The other 3% shall be paid to the "primary role" Franchise or Subfranchise with whom the Sponsor is under contract or for whom the Sponsor worked at the time of retirement or, if the Franchise no longer exists, to the Subfranchise. The Sponsoring Bonus shall be paid out by EXIT by electronic funds transfer directly to the Spo
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, when an Exit Associate transitions to 'part-time' or 'retires', their Sponsoring Bonuses are reduced from 10% to 7% of the gross commissions generated by their recruits, up to a maximum of $7,000 per recruit per calendar year, after deducting Sponsoring Bonus Fees.
The 3% difference between the original 10% and the reduced 7% is allocated to the 'primary role' Exit Franchise or Subfranchise with whom the sponsoring Exit Associate is under contract or was working for at the time of retirement. If that Franchise no longer exists, the 3% is paid to the Subfranchise.
This adjustment in bonus allocation is a key consideration for prospective Exit franchisees. It means that if an agent they sponsor reduces their activity or retires, the franchisee will receive a portion of the sponsoring bonus. This provides an ongoing revenue stream even when agents scale back their involvement. 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.