How are Sponsoring Bonuses paid out to 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 retires, their Sponsoring Bonuses are automatically reduced from 10% to 7% of the gross commissions generated by their recruits, 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 where they last worked before retirement. If that Franchise no longer exists, the 3% goes to the Subfranchise.
The Sponsoring Bonus is disbursed by Exit either through electronic funds transfer directly to the retired Sponsor or via a check. If a check is used, it is sent to the Franchise where the retired Sponsor last worked or was registered before retirement, or to the Franchise or Subfranchise that holds the contract for the part-time Exit Associate.
It is important to note that a retired Exit Associate can continue to sponsor new recruits into the Exit system. Additionally, the Sponsoring Bonus can be restored to the 10% level if the Sales Representative finalizes their 8th Transaction Side or generates $40,000 in gross closed Commissions within the current calendar year; however, this restoration is not applied retroactively. This ensures that even in retirement, Exit Associates can continue to benefit from their network and contributions to the company, while also supporting the ongoing success of the Franchise or Subfranchise they were previously associated with.