How are Transaction Fees paid to Exit and the Subfranchise?

According to Exit's 2025 Franchise Disclosure Document, transaction fees are payable by the franchisee to both the subfranchisor and Exit. These fees are due immediately upon the finalization of each transaction side, which includes both the selling and buying sides of a sales or leasing transaction. The transaction fees are deducted directly from the sales representative's commission.

The amount of the transaction fee varies based on the gross commission generated by the transaction side. For instance, if a transaction side generates a gross commission between $250.01 and $2,500, the transaction fee is $50. For commissions between $2,500.01 and $5,000, the fee is $150. The fee increases to $225 for commissions between $5,000.01 and $10,000, $300 for commissions between $10,000.01 and $25,000, and $400 for commissions exceeding $25,000.

For commissions paid in installments, the transaction fees are calculated for each installment separately, using the same formula applied to all transactions. In cases involving referrals between Exit offices, the transaction fees are split in direct proportion to the percentage of commission earned by each office. For example, if one office earns 25% of the commission, it pays 25% of the transaction fee. All commissions must be entered into MEMO and will be subject to transaction fees unless the gross revenue is $250.00 or less.

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).