Is Exit required to hold commission monies received on behalf of Sales Representatives in trust?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
resentative is responsible for uploading their professional photograph to the RC which will then feed to EXIT's public website. Sales Representatives are encouraged to create a biography on the RC. All content must be truthful and verifiable.
3. REMUNERATION
- a) Generally. As renumeration for services as an independent contractor, Sales Representative will be paid at the EXIT [Trade Name] standard commission rate of 70% on the first $100,000 of gross commission and 90% of the balance per calendar year, pro-rated in the first year in accordance with the Pro-rated Qualifications Guidelines chart attached as Schedule 2.
- b) Disbursement. Any monies received on account of commission by Sales Representative from any trade in real estate conducted by the Sales Representative, shall be held by EXIT [Trade Name] in trust and EXIT [Trade Name] shall disperse in a timely fashion directly to the Sales Representative commission due to the Sales Representative in connection with the Transaction Record Sheet completed at the time of closing the transaction.
- c) Deduction of Fees and Charges.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Exit is required to hold commission monies received on account by Sales Representatives in trust. Specifically, any monies received on account of commission by Sales Representatives from any trade in real estate are to be held by Exit in trust.
Exit is then obligated to disburse the commission due to the Sales Representative in a timely fashion. This disbursement is directly connected to the Transaction Record Sheet, which is completed at the time of closing the transaction.
Furthermore, Exit has the right to deduct any indebtedness owed to them or EXIT from the commissions payable to the Sales Representative, as outlined in the agreement and the EXIT Formula. Exit will also receive any monies from the Sales Representative, for real estate board and association fees, dues or assessments or for personal tax remittance, in trust, and remit the monies, on the Sales Representative's behalf, in a timely fashion by issuing a check to the board or association or taxation department for the entire amount collected on behalf of or from the Sales Representative.