What is the role of Franchisees in developing a high-quality sales force within the Exit system?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
y Franchise to EXIT at the finalization of each Transaction Side via electronic funds transfer. All Company Development Fees shall be deposited into a designated trust account by EXIT upon receipt.
- c) All Commissions of $250.00 or less, are not subject to Company Development Fees.
9. Sponsoring Bonus
- a) The introduction of a person ("Recruit") to the EXIT System, who is subsequently hired by a Franchise as an EXIT Associate, is a process known as "Sponsoring."
- b) Franchisees control the actual hiring of Sales Representatives. Every effort should be made by Franchisees to develop a high-quality sales force to assist the public in the sale and purchase of real estate in an ethical and business-like manner. The Sponsoring process is intended to assist Franchisees in attracting this type of high-quality work force.
- c) A Sponsoring Bonus is paid to the person or persons responsible for the introduction that results in the recruitment of a new Sales Representative into the EXIT System (the "Sponsor"). Each EXIT Associate is eligible to receive a Sponsoring Bonus for Sponsoring equal to 10% of the gross Commissions generated by the Recruit.
- d) All non-licensed persons under written contract with a Franchisee, a Subfranchisor or EXIT are required to virtually attend and successfully complete EXIT's E-Boss online training course before being eligible to participate in EXIT's Sponsoring program.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, franchisees have a significant role in developing a high-quality sales force. Franchisees are responsible for the actual hiring of sales representatives. The FDD emphasizes that franchisees should make every effort to develop a high-quality sales force to assist the public in real estate transactions ethically and professionally.
To aid franchisees in attracting a high-quality workforce, Exit has implemented a "Sponsoring" process. This involves franchisees or their associates recruiting new sales representatives into the Exit system. The sponsoring process provides a financial incentive, as the sponsor is eligible to receive a Sponsoring Bonus equal to 10% of the gross commissions generated by the recruit, up to a maximum of $10,000 per year.
Franchisees must also ensure that all non-licensed persons under contract with them complete Exit's E-Boss online training course before they can participate in the Sponsoring program. This requirement ensures that individuals involved in recruiting are properly trained and aligned with Exit's standards. Furthermore, franchisees are required to maintain written Sales Representative Agreements with each of their sales representatives, using a form approved by the subfranchisor or Exit, ensuring a consistent and compliant operational framework.