What is the Sponsoring Bonus Fee charged by Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
oring Bonus electronically, the corresponding Sponsoring Bonus will be paid out within 30 days.
- k) Sponsoring Bonuses are calculated and paid out in the currency of the country in which the transaction is finalized.
- l) Sponsoring Bonuses are not part of any transaction record sheet and do not pertain to any trade or sale of real estate. Sponsoring Bonuses are never paid by Subfranchisors, Franchisees or Sales Representatives. This 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 for referrals between EXIT Offices will be pro-rated in the same manner as outlined in Sectio
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, each Sponsoring Bonus is subject to a Sponsoring Bonus Fee. This fee is calculated as 10% of the Sponsoring Bonus per Transaction Side, with a maximum charge of $75 per Transaction Side. This fee is deducted by Exit before the Sponsoring Bonus is disbursed to the sponsor.
Sponsoring Bonus Fees for referrals between Exit offices are pro-rated according to the guidelines in Section 6.c). Additionally, in the event of the death of the Sponsor, an administration fee of $35 will be deducted from each Sponsoring Bonus before it is paid out.
However, the Sponsoring Bonus Fee will cease for each calendar year once the sponsored Sales Representative generates $100,000 of gross Commissions for their Franchise(s) in that calendar year; this amount is pro-rated for the first calendar year. This means that high-performing sales representatives can eliminate the Sponsoring Bonus Fee for their sponsors after reaching a certain commission threshold.
For a prospective Exit franchisee, understanding these fees is crucial for budgeting and forecasting potential income from sponsoring new sales representatives. It's important to note the conditions under which the fee is applied, pro-rated, or waived, as well as the additional administrative fee in the event of the sponsor's death.