factual

Under what conditions will the Exit bonus structure continue?

Exit Franchise · 2025 FDD

Answer from 2025 FDD Document

  • p) This bonus structure will continue for as long as both the Sponsor and the Recruit remain licensed and/or employed within the EXIT System, or until the Sponsor or Recruit enters the EXIT Part-time and Retirement Program (explained in Section 10. below) or the EXIT Beneficiary Program (explained in Section 11. below).

  • q) In the event that a Sponsor leaves the EXIT System, the Sponsor loses all rights to any Sponsoring Bonuses, unless the Sponsor returns to the EXIT System within 30 days of departure.

For any Recruits the Sponsor sponsored into the EXIT System prior to the Sponsor's departure, the Sponsoring Bonuses accruing subsequent to the Sponsor's departure will be redirected to the primary role Franchise or Subfranchise most recently under written contract with the Sponsor for at least 90 days prior to the time of departure or, if the Franchise no longer exists, to the Subfranchise.

For purposes of the EXIT Formula, the "primary role" Franchise or Subfranchise will be designated by the Sponsor/EXIT Associate, if there is more than one role performed by the Sponsor.

EXIT Formula (U.S. Version Rev. 03.23.25)

  • r) Should a Recruit return to the EXIT System within two years of departure, then the named Sponsor at the time of the Recruit's termination will, upon reinstatement of the Recruit, be entitled to receive the Sponsoring Bonus for this Recruit. If the Sponsor is no longer in the EXIT system or has lost their sponsorship due to circumstances outlined in 9(q), then the EXIT Franchise that held the Sponsor's license, or employed the Sponsor at the time of departure, will immediately become the Sponsor or, if the Franchise no longer exists, the Subfranchise of that Franchise will become the Sponsor.
  • s) Should a former EXIT Associate return to the EXIT System after an absence of more than two years, the returning EXIT Associate will be processed as a new EXIT Associate.

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

What This Means (2025 FDD)

According to Exit's 2025 Franchise Disclosure Document, the sponsoring bonus structure will continue as long as both the sponsor and the recruit remain licensed or employed within the Exit system. This provides a continued incentive for franchisees to recruit and retain associates within the Exit network. The bonus structure also continues until either the sponsor or the recruit enters the Exit Part-time and Retirement Program or the Exit Beneficiary Program.

If a sponsor leaves the Exit system, they lose all rights to any sponsoring bonuses, unless they return to the system within 30 days of their departure. This creates a limited window for sponsors to return and reclaim their bonus rights, encouraging them to maintain their affiliation with Exit. If the sponsor does not return within 30 days, the sponsoring bonuses will be redirected to the primary role Franchise or Subfranchise most recently under written contract with the sponsor for at least 90 days prior to the time of departure, or if the Franchise no longer exists, to the Subfranchise. This ensures that the bonuses continue to benefit the Exit system even if the original sponsor is no longer involved.

Should a recruit return to the Exit System within two years of departure, the named sponsor at the time of the recruit's termination will, upon reinstatement of the recruit, be entitled to receive the sponsoring bonus for this recruit. If the sponsor is no longer in the Exit system or has lost their sponsorship, then the Exit Franchise that held the sponsor's license, or employed the sponsor at the time of departure, will immediately become the sponsor, or if the Franchise no longer exists, the Subfranchise of that Franchise will become the sponsor. If a former Exit Associate returns to the Exit System after an absence of more than two years, the returning Exit Associate will be processed as a new Exit Associate.

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.