factual

Under what condition can an Exit Associate 'retire' and continue to receive Sponsoring Bonuses?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

  • c) An EXIT Associate may "retire" from the real estate business entirely and continue to receive Sponsoring Bonuses by signing an Affidavit stating that they will not work in any capacity for a competing real estate company.

The EXIT Associate will continue to be affiliated with EXIT under the umbrella of the Franchise or Subfranchise that formerly held the EXIT Associate's license or contract, with the approval of the Franchisee or 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 can 'retire' from the real estate business entirely and still receive Sponsoring Bonuses if they meet a specific condition. To qualify, the Exit Associate must sign an affidavit confirming that they will not work in any capacity for a competing real estate company.

Upon retirement, the Exit Associate will remain affiliated with Exit under the umbrella of the Franchise or Subfranchise that previously held their license or contract, but only with the approval of the Franchisee or Subfranchise. However, if an Exit Associate retires, any Sponsoring Bonuses payable to them will be reduced from 10% to 7% of the gross commissions generated by the recruit, with a maximum of $7,000 per recruit per calendar year, less Sponsoring Bonus Fees. The other 3% will be paid to the 'primary role' Franchise or Subfranchise with whom the Sponsor is under contract or for whom the Sponsor worked at the time of retirement or, if the Franchise no longer exists, to the Subfranchise.

It is important to note that even in retirement, an Exit Associate can continue to sponsor new recruits into the Exit system. The Sponsoring Bonus will be paid out by Exit via electronic funds transfer directly to the Sponsor or by check, sent in care of the Franchise for whom the retired Sponsor last worked or was last registered prior to retirement, or to the Franchise or Subfranchise that holds the contract for the part-time Exit Associate.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.