When are the Regional Development Fees payable to Exit?

According to Exit's 2025 Franchise Disclosure Document, Regional Development Fees are payable to Exit immediately upon the finalization of each transaction. These fees are used for regional growth and development through advertising and promotion within the subfranchise region where the fees are generated. The fees are deducted from the Sales Representative's portion of the commission.

Each transaction side is subject to a Regional Development Fee of $35. However, transactions with gross commissions of $2,500 or less are not subject to this fee. For commissions paid in installments, the Regional Development Fee is calculated for each installment separately, using the same formula as for all transactions.

For referral commissions between Exit offices, the Regional Development Fees are split in direct proportion to the percentage of commission earned. For example, if an office receives 25% of the side commission, it pays 25% of the Regional Development Fee. All commissions are entered into MEMO and are subject to Regional Development Fees unless the gross revenue is $2,500.00 or less. The maximum Regional Development Fees paid per calendar year per Sales Representative is $500 (pro-rated in the first calendar year).

Prospective franchisees should note that these fees directly impact the commission earnings of their sales representatives. Understanding the calculation and payment schedule of these fees is crucial for managing finances and ensuring compliance with Exit's policies.