Under what condition can an Exit Franchise be designated as the Sponsor for a Recruit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
- h) EXIT Franchises may be designated as the Sponsor for a Recruit. (For the purposes of awards recognition only, the Franchise Sponsor shall name the individual(s) responsible for the introduction of the Recruit.) All other Sponsoring Bonuses will be payable to an individual Sponsor, unless the Sponsor signs a direction that their Sponsoring Bonuses be
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, an Exit Franchise can be designated as the Sponsor for a Recruit. However, this designation is specifically for awards recognition purposes only. In this case, the Franchise Sponsor must name the individual(s) responsible for introducing the Recruit.
This means that while the Exit franchise itself can be recognized as the sponsor, the sponsoring bonuses are generally payable to an individual sponsor. The exception is if the individual sponsor directs that their sponsoring bonuses be paid to someone else.
This distinction is important for prospective franchisees to understand, as it clarifies that while the franchise can receive recognition for recruitment efforts, the financial benefits typically accrue to the individual(s) within the franchise who are responsible for the recruitment. This structure incentivizes individual effort while still allowing the franchise to be acknowledged for its overall contribution to recruitment.