Under what condition will an Exit Associate not receive Sponsoring Bonuses?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
As a condition to receiving Sponsoring Bonuses, the EXIT Associate shall not work (directly or indirectly) for any business that is in any way competitive with the business conducted by EXIT or EXIT Franchise, as determined in the sole discretion of EXIT. If the EXIT Associate becomes licensed with or provides services to (whether directly or indirectly) a competing real estate company during the same time that they are licensed with or providing services for an EXIT office and if the competing arrangement continues for 30 days, as determined in the sole discretion of EXIT, the Sponsoring Bonuses accruing subsequent to the EXIT Associate's commencement of the competing arrangement and all Recruits of that EXIT Associate will be redirected to the primary role Franchise or Subfranchisor most recently under written contract with the EXIT Associate for at least 90 days prior to the action, or if the Franchise no longer exists, to the Subfranchise.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, an Exit Associate will not receive Sponsoring Bonuses if they work for a competing real estate business. Specifically, as a condition to receiving Sponsoring Bonuses, the Exit Associate cannot work directly or indirectly for any business that competes with Exit or an Exit Franchise. This determination of what constitutes a competitive business is made at Exit's sole discretion.
If an Exit Associate becomes licensed with or provides services to a competing real estate company while also affiliated with Exit, and this arrangement continues for 30 days, the Sponsoring Bonuses will be redirected. The bonuses and all recruits of that Exit Associate will be redirected to the primary role Franchise or Subfranchisor most recently under written contract with the Exit Associate for at least 90 days prior to the action. If that Franchise no longer exists, the bonuses will be redirected to the Subfranchise.
This non-compete clause is a standard practice in many franchise systems to protect the brand and the investment of other franchisees. Prospective Exit franchisees should carefully consider this restriction and ensure they are willing to commit to Exit exclusively to receive Sponsoring Bonuses.