How are Sponsoring Bonus Fees for referrals between Exit Offices pro-rated?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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 for referrals between Exit offices are pro-rated in the same manner as outlined in Section 6.c). To understand how these fees are pro-rated, one must refer to Section 6.c) of the FDD, which details the specific method used for calculating the split.
Specifically, Section 6.c) states that Regional Development Fees that pertain to referral Commissions between Exit offices are split in direct proportion to the percentage of Commission earned. For example, if an Exit office receives 25% of the commission, that office pays 25% of the Regional Development Fee.
This pro-rating system ensures that the Sponsoring Bonus Fees are distributed fairly between Exit offices based on the actual commission earned by each office involved in the referral. This method aligns the fee payment with the revenue generated, providing a clear and equitable approach to managing referral fees within the Exit franchise system.