How are Sponsoring Bonuses paid out to 'part-time' or 'retired' Exit Associates?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
The EXIT Associate will continue to be affiliated with EXIT under the umbrella of the Franchise or Subfranchise that formerly held the EXIT Associate's license or contract, with the approval of the Franchisee or Subfranchise.
- d) If an EXIT Associate becomes "part-time" or "retires", any Sponsoring Bonuses payable to the EXIT Associate (Sponsor) shall automatically be reduced from the equivalent of 10% to 7% of the gross Commissions generated by the Recruit to a maximum of $7,000 per Recruit per calendar year, less Sponsoring Bonus Fees (defined in Section 9.m) above).
The other 3% shall be paid to the "primary role" Franchise or Subfranchise with whom the Sponsor is under contract or for whom the Sponsor worked at the time of retirement or, if the Franchise no longer exists, to the Subfranchise.
The Sponsoring Bonus shall be paid out by EXIT by electronic funds transfer directly to the Sponsor or by check, sent in care of the Franchise for whom the retired Sponsor last worked or was last registered prior to retirement, or to the Franchise or Subfranchise that holds the contract for the part-time EXIT Associate.
- e) 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.
- f) A retired or part-time EXIT Associate may continue to sponsor more Recruits into the EXIT System.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, when an Exit Associate transitions to 'part-time' or 'retires,' their Sponsoring Bonuses are subject to specific adjustments. The standard 10% bonus is reduced to 7% of the gross commissions generated by the recruit, with a maximum of $7,000 per recruit per calendar year, after deducting Sponsoring Bonus Fees. The remaining 3% is allocated to the 'primary role' Franchise or Subfranchise with whom the sponsor is contracted or worked for at the time of retirement. If that franchise no longer exists, the subfranchise receives the remaining 3%.
The Sponsoring Bonus is disbursed by Exit either through electronic funds transfer directly to the sponsor or via a check. If a check is used, it is sent to the Franchise where the retired sponsor was last registered or worked before retirement, or to the Franchise or Subfranchise that holds the contract for the part-time Exit Associate. This ensures that even in a reduced capacity, the Exit Associate continues to receive compensation for their prior recruitment efforts, while also supporting the ongoing operations of the franchise they were previously associated with.
It's important to note that the Sponsoring Bonus can be restored to the 10% level if the Sales Representative finalizes their 8th Transaction Side or achieves $40,000 in gross closed Commissions within the current calendar year. However, this restoration is not retroactive, meaning the associate will not be compensated for the difference during the period they were designated as part-time or retired. Furthermore, a retired or part-time Exit Associate retains the ability to sponsor new recruits into the Exit System, allowing them to continue building their network and potential income, even in a reduced role.