When does the Sponsoring Bonus Fee cease each calendar year for Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
is is the full responsibility of EXIT.
- m) 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. Sponsoring Bonus Fees f
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Sponsoring Bonus Fee will cease each calendar year once the sponsored Sales Representative generates $100,000 of gross Commissions for their Franchise(s) in that calendar year. This condition is pro-rated in the first calendar year.
For a prospective Exit franchisee, this means that for each sales representative they sponsor, a 10% Sponsoring Bonus Fee (up to $75 per transaction side) will be deducted from the Sponsoring Bonus until that sales representative reaches $100,000 in gross commissions within that year. After the sales representative reaches the specified commission level, the Sponsoring Bonus Fee is no longer deducted for the remainder of the year.
This provision incentivizes franchisees to support their sponsored sales representatives in achieving high commission levels, as it directly benefits the franchisee by eliminating the Sponsoring Bonus Fee once the $100,000 threshold is met. The pro-rated condition in the first calendar year acknowledges that new sales representatives may not immediately generate high commissions, providing a more gradual ramp-up period for both the representative and the sponsoring franchisee.