What is the recommended standard rate of Commission to be paid for an Exit buyer referral?
Exit Franchise · 2025 FDDAnswer 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 buyer referral is 25% of the selling commission received. This means that if an Exit sales representative refers a buyer who successfully purchases a property, the representative should receive 25% of the total commission earned on that sale. This referral system is designed to incentivize agents to connect buyers and sellers within the Exit network.
It is important to note that this 25% is a recommended standard, suggesting that it is not necessarily a fixed or mandatory rate. The document advises that the commission split for Exit referrals remain uniform, implying consistency is preferred. All referrals must be confirmed in writing using documentation supplied or approved by Exit, ensuring a clear record of the agreement and preventing potential disputes.
For a prospective Exit franchisee, understanding the referral system is crucial. It provides an additional avenue for generating income and expanding their network. However, franchisees should ensure that all referral agreements are properly documented and comply with Exit's guidelines to maintain transparency and avoid any conflicts. Franchisees should also confirm that the commission split aligns with local real estate regulations and practices.