factual

What is the recommended standard commission rate to be paid for an Exit listing referral?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

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 listing referral is 40% of the listing commission received. For an Exit buyer referral, the standard rate is 25% of the selling commission received. All referrals must be confirmed in writing using documentation supplied or approved by Exit.

This means that if an Exit franchisee refers a client who lists their property with another Exit agent, the referring franchisee should receive 40% of the commission earned from that listing. Similarly, if a franchisee refers a buyer who purchases a property through another Exit agent, the referring franchisee should receive 25% of the selling commission.

The requirement for written confirmation ensures that all parties are aware of and agree to the referral arrangement, which helps to prevent disputes and maintain transparency. It is important for prospective franchisees to understand these commission structures, as referrals can be a significant source of income in the real estate business. By adhering to these guidelines, Exit aims to maintain uniformity and clarity in its referral system across all franchises.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.