factual

Can a retired or part-time Exit Associate continue to sponsor more Recruits into the Exit System?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

  • f) A retired or part-time EXIT Associate may continue to sponsor more Recruits into the EXIT System.

Source: Item 23 — RECEIPT (FDD pages 42–235)

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, a retired or part-time Exit Associate is allowed to continue sponsoring new recruits into the Exit System. However, if an Exit Associate transitions to part-time or retirement, their Sponsoring Bonuses are automatically reduced. Instead of the standard 10%, they will receive 7% of the gross commissions generated by the recruit, with a maximum of $7,000 per recruit per calendar year, after subtracting Sponsoring Bonus Fees. The remaining 3% is allocated to the 'primary role' Franchise or Subfranchise associated with the sponsor.

This reduction in Sponsoring Bonuses does not have to be permanent. The Exit Associate can have their bonus restored to the 10% level if they finalize their 8th transaction side or earn $40,000 in gross closed commissions within the current calendar year. It's important to note that this restoration is not retroactive, meaning the Exit Associate will not be compensated for the period their bonus was reduced before meeting the requirements.

For a prospective franchisee, this policy means that even if they decide to reduce their involvement in the real estate business, they can still benefit from introducing new members to the Exit system. However, they should be aware of the reduced bonus rate and the conditions for restoring it to the full 10%. This could influence their decision on whether to remain active in sales or focus primarily on sponsoring new recruits.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.