How are the Exit Transaction Fee allocations applied?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
These allocations are applied against the EXIT portion of each Transaction Fee after the Transaction Fee has been divided as provided in the Subfranchise Agreement between the Subfranchisor and EXIT.
The maximum Transaction Fees paid per calendar year per Sales Representative is $2,700 (pro-rated in the first calendar year).
All Transaction Fees for Commissions on properties that are paid in installments, either before or after the closing date of the transaction, will be calculated in the same manner as noted in paragraph 6.a). For example, each installment of Commission will be entered into EXIT's computer reporting system separately and the Transaction Fee will be calculated using the same formula that is used for all transactions.
All Transaction Fees that pertain to referral Commissions shall be treated in the same manner as all transactions except in the case of referrals between EXIT offices. The Transaction Fees that pertain to referral Commissions between EXIT offices shall be split in direct proportion to the percentage of Commission earned. For example, the office that receives 25% of the side pays 25% of the Transaction Fee.
For transactions recorded in MEMO where a team leader and member(s) share commissions, transaction fees are prorated based on the commission split. Using a Transaction Fee of $150 as an example, if the commission is split 60%/40%, the transaction fee would be divided accordingly: $90 for the leader (60%) and $60 for the member (40%). This allocation cannot be altered. Similarly, for individual award calculations, credit for the transaction side is assigned using the same breakdown (0.6 and 0.4 of an end/side, respectively).
All Commissions are to be entered into MEMO and will be subject to transaction fees unless the gross revenue is $250.00 or less.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the transaction fee allocations are applied after the transaction fee has been divided as provided in the Subfranchise Agreement between the Subfranchisor and Exit. The document specifies how transaction fees are handled in various scenarios, including partial commissions and referrals. For partial commissions, transaction fees are calculated in the same manner as regular transactions, with each installment of commission entered separately into Exit's computer reporting system. In the case of referrals between Exit offices, transaction fees are split in direct proportion to the percentage of commission earned. For example, if an office receives 25% of the commission, it pays 25% of the transaction fee.
For teams within Exit, transaction fees are prorated based on the commission split between the team leader and members. For instance, using a transaction fee of $150, if the commission is split 60%/40%, the transaction fee would be divided accordingly: $90 for the leader (60%) and $60 for the member (40%). This allocation cannot be altered. Similarly, for individual award calculations, credit for the transaction side is assigned using the same breakdown (0.6 and 0.4 of an end/side, respectively).
These allocations are managed through Exit's proprietary software, MEMO, which calculates all figures precisely. All commissions are to be entered into MEMO and will be subject to transaction fees unless the gross revenue is $250.00 or less. The maximum transaction fees paid per calendar year per Sales Representative is $2,700 (pro-rated in the first calendar year).