Are the transaction fees for an Exit franchise subject to change?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
Note 1 EXIT's proprietary software for reporting transactions is known as MEMO. See also ITEM 11 Note 2
- Gross Commission of $250.01-$2,500 per side incurs a Transaction Fee of $50
- Gross Commission of $2,500.01-$5,000 per side incurs a Transaction Fee of $150
- Gross Commission of $5,000.01-$10,000 per side incurs a Transaction Fee of $225
- Gross Commission of $10,000.01-$25,000 per side incurs a Transaction Fee of $300
- Gross Commission over $25,000 per side incurs a Transaction Fee of $400
These fees are payable to EXIT Realty Upper Midwest and EXIT and are uniformly imposed. These fees are subject to change by EXIT. Every sale or leasing transaction involves two (2) "Transaction Sides" a "Selling Side" and a "Buying Side." The Transaction Fee is payable on a commission or fee payable to you on a Transaction Side. All Transaction Fees that pertain to referral commissions between EXIT offices are split in direct proportion to the percentage of commission earned. For example, an EXIT Franchise office that receives 25% of a commission side, pays 25% of the Transaction Fee. A portion of each Transaction Fee is allocated to certain funds administered by EXIT (described in ITEM 11). Currently, the allocations per Side are as follows:
[Item 6: OTHER FEES]
NOTE: All of the foregoing fees and memberships are subject to change by EXIT Realty Upper Midwest or EXIT during the term of the Agreement.
NOTE: Memberships and Fees may increase by up to 7% annually (see Section 16 of the EXIT Formula).
Source: Item 6 — OTHER FEES (FDD pages 13–15)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the transaction fees are subject to change. The document specifies that transaction fees, along with other fees and memberships, can be changed by Exit Realty Upper Midwest or Exit during the term of the agreement.
The transaction fees for Exit franchises range from $50 to $400 per transaction side, depending on the gross commission earned. Specifically, a gross commission of $250.01-$2,500 per side incurs a $50 transaction fee, while a gross commission over $25,000 per side incurs a $400 transaction fee. These fees are payable to both Exit Realty Upper Midwest and Exit.
This means that while the FDD outlines the current fee structure, Exit retains the right to modify these fees, potentially impacting a franchisee's profitability. Prospective franchisees should factor in the possibility of fee increases when evaluating the financial viability of an Exit franchise. It is also important to note that memberships and fees may increase by up to 7% annually, as stated in Section 16 of the Exit Formula.