How are Exit referral commission transaction fees handled between Exit offices?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
All Transaction Fees that pertain to referral Commissions shall be treated in the same manner as all transactions except in the case of referrals between EXIT offices. The Transaction 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 Transaction Fee.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, transaction fees for referral commissions between Exit offices are handled differently than regular transactions. 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.
Specifically, the transaction fees are split in direct proportion to the percentage of commission earned by each office. For example, if one Exit office receives 25% of the commission on a side of the transaction, that office is responsible for paying 25% of the total transaction fee. This pro-rata split applies to both transaction fees and regional development fees.
This arrangement ensures that each Exit office contributes to the transaction fees based on their actual earnings from the referral. It also means that offices need to accurately track and report the commission splits to ensure correct fee allocation. This proportional split applies specifically to referrals between Exit offices, while other referral commissions are treated as standard transactions.