To whom are the transaction fees payable for an Exit franchise?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 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, transaction fees are payable to both Exit Realty Upper Midwest and Exit. The amount of the transaction fee varies based on the gross commission earned per side of the transaction, ranging from $50 to $400. These fees are due at the time of closing of each sales or rental transaction. Payment is made via electronic funds transfer or other means as directed by the subfranchisor and Exit.
Transaction fees are incurred on both the selling and buying sides of a transaction. These fees are subject to change by Exit. In instances of referral commissions between Exit offices, the transaction fees are split proportionally to the commission earned. For example, if an Exit franchise office receives 25% of a commission side, it pays 25% of the transaction fee.
The transaction fees are capped at $2,700 per year, per sales representative, and are pro-rated in the first calendar year. A portion of each transaction fee is allocated to funds administered by Exit, as detailed in Item 11 of the FDD. Understanding the specifics of these transaction fees, including the allocation of funds and potential changes, is crucial for prospective Exit franchisees to accurately forecast their operating costs.