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For Exit referrals between offices, how is the Regional Development Fee split?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

All Regional Development 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 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.

Source: Item 23 — RECEIPT (FDD pages 42–235)

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, the Regional Development Fees for referral commissions between Exit offices are split in direct proportion to the percentage of commission earned by each office. For instance, if an Exit office receives 25% of the commission for a transaction side, that office is responsible for paying 25% of the Regional Development Fee. This ensures that the fee burden is distributed fairly based on the revenue each office generates from the referral.

The Regional Development Fee itself is used for regional growth and development through advertising and promotion within the subfranchise region where it is generated. Each transaction side is generally subject to a Regional Development Fee of $35, but this fee is waived for minimum commission transactions generating a gross commission of $2,500 or less. The maximum Regional Development Fees paid per calendar year per Sales Representative is $500, pro-rated in the first calendar year.

This proportional split of Regional Development Fees applies specifically to referrals between Exit offices. For all other transactions, including those involving external referrals, the standard Regional Development Fee rules apply. This policy ensures that offices collaborating within the Exit system share the costs associated with regional development in a manner that reflects their respective contributions to the transaction.

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.