How is the Transaction Fee for Exit franchises paid?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
osure Document and is not refundable.
ITEM 6 OTHER FEES
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Computer | $250 | Monthly | Payable by you to |
| Software Fee1 | EXIT | ||
| Renewal Fee | 10% of the then current Initial Franchise Fee for a territory of your size, not to exceed 25% of the initial franchise fee paid for a five (5) year renewal; or 15% of the then current Initial Franchise Fee for a territory of your size not to exceed 37.5% of the initial franchise fee paid for a ten (10) year renewal. | At the time the Franchise Agreement is renewed (5 years). | Payable by you to EXIT Realty Upper Midwest |
| Transaction Fee2 | $50 - $400 per transaction side, not to exceed $2,700 per year, per Sales Representative (pro rated in the first calendar year). | At the time of closing of each sales/rental transaction. | Payable by you to EXIT Realty Upper Midwest and EXIT by electronic funds transfer or by such means as Subfranchisor and EXIT may direct. |
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the Transaction Fee, which ranges from $50 to $400 per transaction side, is due at the time of closing of each sales or rental transaction. These fees are payable to Exit Realty Upper Midwest and Exit. The method of payment is via electronic funds transfer or by such means as the Subfranchisor and Exit may direct. The transaction fee is capped at $2,700 per year, per Sales Representative, and is pro-rated in the first calendar year.
The amount of the Transaction Fee depends on the gross commission earned per side of the transaction. For example, a gross commission of $250.01 to $2,500 incurs a $50 transaction fee, while a gross commission over $25,000 incurs a $400 transaction fee. Every sale or leasing transaction involves two transaction sides: a selling side and a buying side. The Transaction Fee is payable on a commission or fee payable to the franchisee on a Transaction Side.
It's important to note that all transaction fees pertaining to referral commissions between Exit offices are split in direct proportion to the percentage of commission earned. For instance, if an Exit franchise office receives 25% of a commission side, it pays 25% of the Transaction Fee. A portion of each Transaction Fee is allocated to certain funds administered by Exit, as described in Item 11 of the FDD. These fees are subject to change by Exit.