What is the recommended standard commission rate to be paid for an Exit buyer referral?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
13. The EXIT Referral System
- a) It is recommended that the Commission split for EXIT referrals remain uniform. The standard rate of Commission to be paid for an EXIT listing referral is 40% of the listing Commission received. The standard rate of Commission to be paid for an EXIT buyer referral is 25% of the selling Commission received. All referrals must be confirmed in writing on documentation supplied or approved by EXIT.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the recommended standard commission rate for an Exit buyer referral is 25% of the selling commission received. It is important to note that this is a recommended rate, implying that it is not necessarily mandatory but rather a suggested guideline for franchisees to follow. All referrals must be confirmed in writing using documentation supplied or approved by Exit.
This standard commission rate aims to maintain uniformity within the Exit referral system. By adhering to this recommendation, franchisees can ensure consistency in their dealings with other Exit offices and sales representatives, fostering a more predictable and transparent referral process. This can be beneficial for building trust and encouraging more referrals within the Exit network.
For a prospective franchisee, understanding the commission structure for referrals is crucial for financial planning and revenue projections. While the 25% rate provides a benchmark, franchisees should confirm whether this rate is consistently applied across the network and if there are any circumstances where it might vary. Additionally, franchisees should familiarize themselves with the required documentation process for confirming referrals to ensure compliance and avoid any disputes over commission payments.
It is also important to note that the Regional Development Fees that pertain to referral commissions between Exit offices shall be split in direct proportion to the percentage of commission earned. For example, the office that receives 25% of the side pays 25% of the Regional Development Fee.