Are Exit Sponsoring Bonuses subject to Sponsoring Bonus Fees?
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, Sponsoring Bonuses are indeed subject to Sponsoring Bonus Fees. 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 to the recipient.
There is a condition where the Sponsoring Bonus Fee can cease. This occurs when the sponsored Sales Representative generates $100,000 of gross Commissions for their Franchise(s) in that calendar year. This amount is pro-rated in the first calendar year.
In the event of the death of the Sponsor, an additional administration fee of $35 will be deducted from each Sponsoring Bonus prior to disbursement. Sponsoring Bonus Fees for referrals between Exit Offices will be pro-rated in the same manner as outlined in Section 6.c).
This fee structure affects the overall amount a franchisee or sales representative receives from sponsoring new members, so it's important to factor these fees into potential earnings calculations. Understanding these deductions helps in accurately assessing the financial benefits of participating in Exit's sponsoring program.