Are Exit Sponsoring Bonuses paid by Subfranchisors, Franchisees, or Sales Representatives?

According to Exit's 2025 Franchise Disclosure Document, Sponsoring Bonuses are not paid by Subfranchisors, Franchisees, or Sales Representatives. The FDD clearly states that the payment of Sponsoring Bonuses is the full responsibility of Exit.

Exit pays the Sponsoring Bonus after receiving the Company Development Fee designated for the Recruit. These bonuses are typically paid via electronic funds transfer within seven days of Exit receiving the Company Development Fee. If electronic payment is not possible, the bonus will be paid within 30 days.

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. This fee is deducted by Exit before the Sponsoring Bonus is disbursed. This fee ceases once the sponsored Sales Representative generates $100,000 of gross Commissions for their Franchise(s) in that calendar year, pro-rated in the first calendar year.

This arrangement clarifies that Exit manages the financial aspects of the Sponsoring Bonus program, ensuring that Franchisees, Subfranchisors, and Sales Representatives are not burdened with these payments. This centralized system likely ensures consistency and compliance across the Exit franchise network.