When are the Transaction Fees payable to Exit for each Transaction Side?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
These payments are due immediately upon the finalization of each transaction.
6. Transaction Fees
Every sales or leasing transaction involves two "Transaction Sides", a "Selling Side" and a "Buying Side". Each "Transaction Side" is subject to the following Transaction Fees, payable to EXIT immediately upon the finalization of each transaction:
a) Transaction Fees (Residential and Commercial)
Each Transaction Side is subject to a Transaction Fee as follows:
- i) The Transaction Fees payable on Transaction Sides generating a gross Commission to the Franchise of between $250.01 and $2,500 ("Minimum Commissions") shall be $50.
- ii) The Transaction Fees payable on Transaction Sides generating a gross Commission to the Franchise of between $2,500.01 and $5,000 shall be $150.
- iii) The Transaction Fees payable on Transaction Sides generating a gross Commission to the Franchise of between $5,000.01 and $10,000 shall be $225.
- iv) The Transaction Fees payable on Transaction Sides generating a gross Commission to the Franchise of between $10,000.01 and $25,000 shall be $300.
- v) The Transaction fees payable on Transaction Sides generating a gross Commission to the Franchise of over $25,000 shall be $400.
b) Partial Commissions
All Transaction Fees for Commissions on properties that are paid in installments, either before or after the closing date of the transaction, will be calculated in the same manner as noted in paragraph 6.a). For example, each installment of Commission will be entered into EXIT's computer reporting system separately and the Transaction Fee will be calculated using the same formula that is used for all transactions.
c) Referrals
All Transaction Fees that pertain to referral Commissions shall be treated in the same manner as all transactions except in the case of referrals between EXIT offices. The Transaction Fees that pertain to referral Commissions between EXIT offices shall be split in direct proportion to the percentage of Commission earned. For example, the office that receives 25% of the side pays 25% of the Transaction Fee.
d) Nominal Revenue
All Commissions are to be entered into MEMO and will be subject to transaction fees unless the gross revenue is $250.00 or less.
e) Payment
Transaction Fees are payable by Franchise to Subfranchise and EXIT. Transaction Fees are payable at the finalization of the Transaction Side and are deducted from the Sales Representative's portion of the Commission.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Transaction Fees are payable to Exit immediately upon the finalization of each transaction. Every sales or leasing transaction involves two Transaction Sides: a Selling Side and a Buying Side. Each Transaction Side is subject to Transaction Fees.
The amount of the Transaction Fee depends on the gross commission generated for the franchise. For example, if a Transaction Side generates a gross commission between $250.01 and $2,500, the Transaction Fee is $50. If the gross commission is over $25,000, the Transaction Fee is $400.
For commissions paid in installments, Transaction Fees are calculated for each installment separately, using the same formula as for all transactions. For referral commissions between Exit offices, Transaction Fees are split in proportion to the commission earned. All commissions are to be entered into MEMO and will be subject to transaction fees unless the gross revenue is $250.00 or less. Transaction Fees are payable by Franchise to Subfranchise and EXIT. Transaction Fees are payable at the finalization of the Transaction Side and are deducted from the Sales Representative's portion of the Commission.