Under what conditions can an Exit Sales Representative share fees with other sales representatives?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
The fees may be jointly shared by Sales Representative with one or more sales representatives under contract with EXIT [Trade Name] or with one or more cooperating real estate sales representatives or brokers not associated with EXIT [Trade Name], as the parties may agree in writing, provided, however, Sales Representative shall promptly notify EXIT [Trade Name] in writing of the terms of the sharing arrangements.
All payments of referral fees and shares of commission, shall be in compliance with applicable law, shall be made by EXIT [Trade Name], and all monies withheld for that purpose shall be withheld from commissions received by EXIT [Trade Name].
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, a Sales Representative can share fees earned from real estate transactions under specific conditions. The fees may be shared with other sales representatives under contract with Exit or with cooperating real estate sales representatives or brokers not associated with Exit. However, all parties must agree to the terms in writing.
It is crucial that the Exit Sales Representative promptly notifies Exit in writing about the terms of any fee-sharing arrangements. This ensures transparency and compliance with Exit's policies. All payments of referral fees and commission shares must comply with applicable laws and are made by Exit, with any necessary withholdings taken from the commissions received by Exit.
This arrangement allows Exit sales representatives to collaborate and incentivize referrals, potentially increasing their business opportunities. However, it also places a responsibility on the representative to ensure all agreements are documented and communicated to Exit to maintain legal and policy compliance.