Is the restoration of the Exit Sponsoring Bonus to 10% retroactive?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
th whom the Sponsor is under contract or for whom the Sponsor worked at the time of retirement or, if the Franchise no longer exists, to the Subfranchise. The Sponsoring Bonus shall be paid out by EXIT by electronic funds transfer directly to the Spo
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the restoration of the Sponsoring Bonus to the 10% level is not retroactive. This means that once an Exit sales representative reaches the required performance threshold, which is either the finalization of their 8th transaction side or $40,000 in gross closed commissions within the current calendar year, they will receive the 10% sponsoring bonus moving forward, but they will not receive any adjustment for prior periods.
For a prospective Exit franchisee, this policy means that it's important to track the performance of sponsored sales representatives closely. Once a representative hits the 8 transactions or $40,000 in gross commissions, the franchisee can expect the sponsoring bonus to be calculated at the 10% level from that point forward. There won't be any back payments or adjustments for commissions earned before the threshold was met.
This non-retroactive restoration policy is a standard practice in many commission-based compensation structures. It provides clarity and simplifies the accounting process for Exit and its franchisees. Franchisees should ensure that they understand this policy and communicate it clearly to their sales representatives to avoid any misunderstandings or disputes regarding bonus payments.