factual

Under what condition is the Sponsoring Bonus paid by Exit?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

  • j) The Sponsoring Bonus is paid by EXIT after the Company Development Fee designated for the same Recruit is received by EXIT.

If funds are received electronically the bonus is typically paid out within seven days.

In the rare event that the Company Development Fee is not received electronically, or the associate has not elected to receive the Sponsoring Bonus electronically, the corresponding Sponsoring Bonus will be paid out within 30 days.

Source: Item 23 — RECEIPT (FDD pages 42–235)

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, the Sponsoring Bonus is paid by Exit after the Company Development Fee designated for the same Recruit is received by Exit. This means that before a sponsor can receive their bonus, Exit must first receive the required Company Development Fee associated with the new recruit they brought into the system.

The timing of the bonus payout depends on how the Company Development Fee is received. If the funds are received electronically, the bonus is typically paid out within seven days. However, if the Company Development Fee is not received electronically, or if the associate has not elected to receive the Sponsoring Bonus electronically, the bonus will be paid out within 30 days. This difference in payout timelines highlights the importance of electronic transactions for faster bonus processing.

It's important to note that Sponsoring Bonuses are calculated and paid out in the currency of the country in which the transaction is finalized. Additionally, these bonuses are not part of any transaction record sheet and do not pertain to any trade or sale of real estate. The responsibility for paying Sponsoring Bonuses lies solely with Exit, and these bonuses are never paid by Subfranchisors, Franchisees, or Sales Representatives. Each Sponsoring Bonus is subject to a Sponsoring Bonus Fee of 10% of the Sponsoring Bonus per Transaction Side to a maximum of $75 per Transaction Side.

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.