What is the Regional Development Fee for each Transaction Side under the Exit franchise agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
00 | $7.50 | $10.00 | $13.33 | | U.S. Charitable Fund | $1.67 | $5.00 | $7.50 | $10.00 | $13.33 |
These allocations are applied against the EXIT portion of each Transaction Fee after the Transaction Fee has been divided as provided in the Subfranchise Agreement between the Subfranchisor and EXIT.
The maximum Transaction Fees paid per calendar year per Sales Representative is $2,700 (pro-rated in the first calendar year).
7. Regional Development Fees
The Regional Development Fee is a fee used for the regional growth and development through advertising and promotion only within the Subfranchise region in which it is generated. Each Transaction Side is subject to the following Regional Development Fees payable to EXIT immediately upon the finalization of each transaction:
a) Regional Development Fees (Residential and Commercial)
Each Transaction Side is subject to a Regional Development Fee of $35. However, minimum Commission transactions generating a gross Commission of $2,500 or less will not be subject to a Regional Development Fee.
b) Partial Commissions
All Regional Development Fees for Commissions on all properties that are paid in installments either before or after the closing date of the transaction will be calculated in the same manner as noted in paragraph 7.a). For example, each installment of Commission will be entered into EXIT's computer reporting system separately and the Regional Development Fee will be calculated using the same formula that is used for all transactions.
c) Referrals
All Regional Development Fees that pertain to referral Commissions shall be treated in the same manner as all transactions except in
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a Regional Development Fee is applied to each transaction side, intended for regional growth through advertising and promotion within the subfranchise region. The standard Regional Development Fee for each transaction side is $35. This fee is payable to Exit immediately upon the finalization of each transaction.
However, there is an exception: minimum commission transactions that generate a gross commission of $2,500 or less are not subject to this Regional Development Fee. This means that if an Exit franchisee or their sales representative closes a deal with a small commission, they won't have to pay the Regional Development Fee on that transaction.
For commissions paid in installments, the Regional Development Fee is calculated for each installment separately, using the same formula as for all transactions. In the case of referrals between Exit offices, the Regional Development Fees are split in direct proportion to the percentage of commission earned by each office. For example, if one office receives 25% of the commission, they pay 25% of the Regional Development Fee. All commissions must be entered into MEMO and will be subject to Regional Development Fees unless the gross revenue is $2,500.00 or less.