For Exit referral commissions between Exit offices, how is the transaction fee split?
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, when a referral commission occurs between Exit offices, the transaction fee is split in direct proportion to the percentage of the commission earned. This means that if one office receives 25% of the commission, they are responsible for paying 25% of the transaction fee.
This proportional split of transaction fees directly impacts the profitability of each Exit office involved in a referral. For instance, an office receiving a smaller percentage of the commission will pay a correspondingly smaller portion of the fee, which can help maintain profitability on lower-value referrals. Conversely, an office earning a larger share of the commission will bear a larger portion of the transaction fee.
This policy ensures fairness and aligns the fee burden with the revenue generated by each office. It also encourages offices to collaborate on referrals, knowing that the fees will be distributed equitably based on their contribution to the transaction. Franchisees should consider this fee structure when evaluating the potential benefits of participating in Exit's referral network.