Under what condition is a transaction NOT subject to the Regional Development Fee under the Exit franchise agreement?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Transaction Side is subject to a Regional Development Fee of $35. However, minimum Commission transactions generating a gross Commission of $2,500 or less will not be subject to a Regional Development Fee.
All Commissions are to be entered into MEMO and will be subject to Regional Development Fees unless the gross revenue is $2,500.00 or less.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a transaction is not subject to the Regional Development Fee if it generates a gross commission of $2,500 or less. This applies to both residential and commercial transactions. The Regional Development Fee is used for regional growth and development through advertising and promotion within the subfranchise region where it is generated.
This exemption from the Regional Development Fee for lower-commission transactions can be beneficial for Exit franchisees, particularly those operating in markets with lower property values or those who handle a significant number of smaller transactions. It reduces the financial burden on these transactions, potentially making them more profitable.
Furthermore, all commissions are to be entered into MEMO and will be subject to Regional Development Fees unless the gross revenue is $2,500.00 or less. This means that Exit franchisees must accurately track and report all commissions through the MEMO system to ensure proper calculation and application of the Regional Development Fees. This also applies to commissions paid in installments, where each installment is treated as a separate transaction for the purpose of calculating the Regional Development Fee.