factual

How are Exit Sponsoring Bonuses typically paid to the Sponsor?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

, documents acceptable to EXIT must be provided verifying the Sponsor's interest in the entity. A Sponsor cannot redirect their Sponsoring Bonuses to more than one legal entity. Unless a beneficiary has been designated, as provided in Section 11(a) below, payment of the Sponsoring Bonuses to the redirected legal entity shall end upon the Sponsor's death.

  • i) EXIT, as Franchisor, is responsible for the payment of all Sponsoring Bonuses throughout the entire EXIT System. Sponsoring Bonuses for all EXIT Associates will be made payable by electronic funds transfer (whenever possible) to the Sponsor.
  • j) The Sponsoring Bonus is paid by EXIT after the Company Development Fee designated for the same Recruit is received by EXIT. If funds are received electronically the bonus is typically paid out within seven days. In the rare event that the Company Development Fee is not received electronically, or the associate has not elected to receive the Sponsoring Bonus electronically, the corresponding Sponsoring Bonus will be paid out within 30 days.

Source: Item 23 — RECEIPT (FDD pages 42–235)

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, Sponsoring Bonuses for Exit Associates are typically paid via electronic funds transfer to the Sponsor. This is the preferred method of payment. The Sponsoring Bonus is paid by Exit after the Company Development Fee designated for the same Recruit is received by Exit. If the funds are received electronically, the bonus is typically paid out within seven days.

However, if electronic funds transfer is not possible or the associate has not elected to receive the Sponsoring Bonus electronically, the bonus will be paid out within 30 days. Sponsoring Bonuses are calculated and paid out in the currency of the country in which the transaction is finalized.

It's important to note that Exit deducts a Sponsoring Bonus Fee of 10% of the Sponsoring Bonus per Transaction Side, with a maximum of $75 per Transaction Side, before disbursing the bonus. 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.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.