How are the Transaction Fee allocations applied against the Exit portion?

According to Exit's 2025 Franchise Disclosure Document, the allocations for transaction fees are applied against the Exit portion of each transaction fee. This occurs after the transaction fee has been divided as outlined in the Subfranchise Agreement between the Subfranchisor and Exit.

In practical terms, this means that when a real estate transaction closes, the total transaction fee is first split according to the pre-existing agreement between the subfranchisor and Exit. Only after this initial division are the various allocations (which could include fees for advertising, regional development, or other purposes) then deducted from Exit's share of the transaction fee.

This process ensures that the subfranchisor receives their agreed-upon portion of the transaction fee before any further deductions are made for other allocations managed by Exit. Franchisees should carefully review the Subfranchise Agreement to understand how the initial division of transaction fees is structured, as this will directly impact the amount from which the allocations are then applied against Exit's portion.