Under what conditions can an Exit Associate 'retire' and continue to receive Sponsoring Bonuses?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
entire calendar year following.
- b) If the EXIT Associate does not close a minimum of eight Transaction Sides or earn at least $40,000 in gross closed Commissions per calendar year (pro-rated in the first year and extended as noted in Section 10.a) above for those EXIT Associates who join after October 1st), the EXIT Associate shall be designated "part-time" for the following calendar year. (This minimum sales production does not apply to Franchisees or Subfranchisors.)
- 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 specific conditions. To qualify, the Exit Associate must sign an affidavit confirming they will not work for any competing real estate company. This ensures that the associate is truly retiring from the industry and not simply switching to a competitor while still benefiting from their previous work with Exit.
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. This affiliation is subject to the approval of the Franchisee or Subfranchise, indicating that the local franchise owner has the final say in maintaining the relationship. This continued affiliation allows the retired associate to continue receiving Sponsoring Bonuses, albeit at a reduced rate.
Specifically, if an Exit Associate retires, their Sponsoring Bonuses are reduced from 10% to 7% of the gross commissions generated by their recruits, with a maximum of $7,000 per recruit per calendar year, after deducting Sponsoring Bonus Fees. The remaining 3% is allocated to the 'primary role' Franchise or Subfranchise with whom the Sponsor was contracted at the time of retirement, or to the Subfranchise if the Franchise no longer exists. Even in retirement, an Exit Associate can continue to sponsor new recruits into the Exit system, further allowing them to earn Sponsoring Bonuses.