How are Exit Regional Development Fees treated for referral commissions between Exit offices?

According to Exit's 2025 Franchise Disclosure Document, Regional Development Fees for referral commissions between Exit offices are split based on the percentage of commission earned by each office. This means that if one Exit office receives 25% of the commission from a referral, that office is responsible for paying 25% of the Regional Development Fee.

This pro-rata split of Regional Development Fees applies specifically to referrals between Exit offices. For all other transactions, including those involving outside referrals, the standard Regional Development Fee rules apply. The standard Regional Development Fee is $35 per transaction side, but this fee is waived for minimum commission transactions generating a gross commission of $2,500 or less.

This policy ensures that Regional Development Fees are distributed fairly between Exit offices involved in a referral, aligning the fee burden with the revenue generated by each office. It also encourages collaboration and referrals within the Exit network, as offices are not penalized with the full Regional Development Fee for sharing commissions on referred transactions. This could incentivize Exit franchisees to work together, expanding their reach and potential income.