From what source are monies withheld for referral fees and commission shares at Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
All payments of referral fees and shares of commission, shall be in compliance with applicable law, shall be made by EXIT [Trade Name], and all monies withheld for that purpose shall be withheld from commissions received by EXIT [Trade Name].
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, all monies withheld for referral fees and shares of commission are withheld from the commissions received by Exit. This means that when a sales representative earns a commission, Exit withholds the necessary amounts for referral fees and commission shares before distributing the remaining balance to the representative.
This process ensures that referral fees and commission shares are properly accounted for and paid out. It also simplifies the payment process for sales representatives, as they receive their net commission after these deductions have been made. The payments of referral fees and shares of commission must comply with applicable laws.
For a prospective Exit franchisee, this means that the commissions they receive will already have the referral fees and commission shares deducted. This system provides transparency and ensures that all parties involved in a transaction, including referring parties, receive their due compensation directly through Exit's processes.