Under what condition is a minimum commission transaction NOT subject to a Regional Development Fee for the Exit franchise?

According to Exit's 2025 Franchise Disclosure Document, a minimum commission transaction is not subject to a Regional Development Fee if the gross commission generated is $2,500 or less. The Regional Development Fee is used for regional growth and development through advertising and promotion within the subfranchise region. Each transaction side is generally subject to a Regional Development Fee of $35, but this fee is waived for these smaller commission transactions.

This exemption from the Regional Development Fee for lower-commission transactions can be beneficial for Exit franchisees and their sales representatives, as it reduces the financial burden on smaller deals. This may incentivize agents to pursue a wider range of transactions, including those with lower commission potential, without incurring additional fees. It also means that the franchisee will not have to pay the $35 fee for transactions of $2,500 or less.

It's important to note that all commissions are to be entered into MEMO, Exit's computer reporting system, and will be subject to Regional Development Fees unless the gross revenue is $2,500.00 or less. This ensures that all transactions are properly tracked and that the appropriate fees are applied, with the exception of those minimum commission transactions that fall under the stated threshold. This also means that the franchisee must ensure that all commissions are accurately reported in MEMO to properly calculate and remit the Regional Development Fees.