What is the Sponsoring Bonus that an Exit Associate is eligible to receive for Sponsoring?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee. The maximum Company Development Fee per calendar year per Sales Representative is $10,000 (pro-rated in the first calendar year).
- b) The Company Development Fee shall be paid by 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.
- e) The Sponsoring Bonus is paid by EXIT up to a maximum of $10,000 per Recruit per calendar year (pro-rated in the first calendar year), less applicable Sponsoring Bonus Fees (defined in subsection 9.m) below).
- f) It is mandatory that each Sales Representative be sponsored into the EXIT System. Sales Representatives cannot be designated as their own Sponsor nor can two Sales Representatives sponsor each other. The Sponsorship must be acknowledged and verified by each Recruit, in a manner satisfactory to EXIT via EXIT's online "EXIT Associate Profile".
- g) In the event that a Recruit is introduced to the EXIT System by two Sponsors, then the Sponsoring Bonus wi
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, an Exit Associate is eligible to receive a Sponsoring Bonus for introducing a new sales representative to the Exit system. This bonus is equivalent to 10% of the gross commissions generated by the recruit. However, this bonus is subject to a maximum of $10,000 per recruit per calendar year, and is pro-rated in the first calendar year. The bonus is also subject to Sponsoring Bonus Fees.
It is important to note that 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. The Sponsoring Bonus is paid by Exit after the Company Development Fee designated for the same Recruit is received by Exit. If funds are received electronically the bonus is typically paid out within seven days. In the rare event that the Company Development Fee is not received electronically, or the associate has not elected to receive the Sponsoring Bonus electronically, the corresponding Sponsoring Bonus will be paid out within 30 days.
If an Exit Associate becomes "part-time" or "retires", their Sponsoring Bonuses are reduced to 7% of the gross Commissions, up to a maximum of $7,000 per recruit per calendar year, less Sponsoring Bonus Fees. The other 3% is paid to the "primary role" Franchise or Subfranchise. The Sponsoring Bonus will be restored to the 10% level immediately upon the finalization of the 8th Transaction Side or $40,000 in gross closed Commissions in the current calendar year by the Sales Representative. Restoration is not retroactive.
Each Sponsoring Bonus is subject to a Sponsoring Bonus Fee of 10% of the Sponsoring Bonus per Transaction Side to a maximum of $75 per Transaction Side. The Sponsoring Bonus Fee shall cease each calendar year once the sponsored Sales Representative generates $100,000 of gross Commissions for their Franchise(s) in that calendar year (pro-rated in the first calendar year). The Sponsoring Bonus Fee is deducted by EXIT prior to disbursement of the Sponsoring Bonus.