Where are Exit's Sponsoring Bonus Fees defined?
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, the Sponsoring Bonus Fees are defined in subsection 9.m of Item 23. Each Sponsoring Bonus is subject to a Sponsoring Bonus Fee of 10% of the Sponsoring Bonus per Transaction Side, with a maximum of $75 per Transaction Side. These fees apply to bonuses paid to individuals who recruit new sales representatives into the Exit system.
The Sponsoring Bonus Fees are pro-rated for referrals between Exit offices, mirroring the structure outlined in Section 6.c. Additionally, in the event of the sponsor's death, an administration fee of $35 will be deducted from each Sponsoring Bonus before it is disbursed. 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, with this amount being pro-rated in the first calendar year.
Exit deducts the Sponsoring Bonus Fee before distributing the Sponsoring Bonus. This means that the sponsor receives the bonus amount net of the applicable fees. Understanding these fees is crucial for prospective franchisees, as they directly impact the actual bonus amount received from sponsoring new sales representatives. Franchisees should also note the conditions under which these fees are pro-rated or waived, as well as the additional administrative fee in the event of the sponsor's death.