Under the Exit system, what is the relationship between a Sales Representative and the Exit franchisee?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
sentative's independent business ability. Sales Representative has not relied on any warranty or representation written, printed, or oral, express or implied, as to Representative's potential success in the business contemplated by this Agreement.
Sales Representative acknowledges having read and understood the foregoing prior to signing it and acknowledges being in receipt of a fully executed copy of this Agreement.
| Witness Signature | Date | Sales Representative Signature | Date |
|---|---|---|---|
| Sales Representative Name | |||
| Witness Print Name | |||
| Witness Signature | Date | Franchisee Signature Franchisee Name | Date |
| Witness Print Name |
SCHEDULE 1
THE EXIT FORMULA
THE EXIT FORMULA
(U.S. Revision Effective-03.23.25)
1. Franchisor
EXIT Realty Corp. International ("EXIT") is the Franchisor. EXIT provides strategic oversight and support of all EXIT Subfranchises and Franchises with regard to the establishment, maintenance and updates of all policies, procedures, standards, and business insight of EXIT. EXIT is not a real estate brokerage and does not belong to any real estate board.
2. Sales Representatives and EXIT Associates
Sales Representatives mean all licensed real estate salespersons and brokers performing services as an employee or independent contractor for an EXIT Franchise.
EXIT Associates mean all Subfranchisors, Franchisees, and Sales Representatives, as well as all non-licensed persons under written contract with a Franchise, Subfranchise or EXIT who have met the requirements outlined in section 9.d), below.
It is important that all EXIT Associates who maintain multiple roles within the EXIT System identify the role which represents their "primary" role, as described in Section 9.q) below, on appropriate EXIT documentation.
3. Effective Date
The Effective Date for Sales Representatives is defined as the date that (1) the Sales Representative's license is formally transferred under Franchise's Real Estate Broker's License, (2) the Sales Representative has executed a Sales Representative's Agreement which has been approved by EXIT, and (3) the EXIT Associate Profile (described in Section 9.f)) below) has been completed.
The Effective Date for all other EXIT Associates is defined as the date that (1) a written contract is executed with a Franchise, Subfranchise or EXIT, and (2) execution of the online EXIT Associate Profile.
The signing of the contract, the transfer of the real estate license and completion of the Associate Profile (see Section 9.f) below) are prerequisites to generate the remuneration package outlined in this document. EXIT Associates may not make use of the EXIT trade name or any other proprietary marks of EXIT, on business cards, signage or in any published media until these prerequisites have been met.
4. Annual Membership
EXIT Formula (U.S. Version Rev. 03.23.25)
a) Each EXIT Associate shall pay to EXIT an Annual Membership of $425.00. The Annual Membership is non-refundable and is due and payable on the Effective Date of the Sales Representative's Agreement or the date the person becomes a part of the EXIT System, as applicable, and on each July 1st thereafter.
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Sales Representatives are defined as licensed real estate salespersons and brokers who perform services for an Exit Franchise, either as employees or independent contractors. The franchisee controls the hiring of Sales Representatives and is expected to build a high-quality sales force. It is mandatory for each Sales Representative to be sponsored into the Exit System, and they cannot sponsor themselves or each other.
Exit Associates include Sales Representatives, Subfranchisors, Franchisees, and non-licensed individuals under contract with a Franchise, Subfranchise, or Exit who have completed the required E-Boss online training course. It's important for all Exit Associates with multiple roles to identify their primary role on Exit documentation. The effective date for a Sales Representative is the date their license is transferred under the Franchise's Real Estate Broker's License, they have a Sales Representative's Agreement approved by Exit, and their Exit Associate Profile is complete.
The Exit franchisee is required to have a written Sales Representative Agreement with each of their Sales Representatives, using a form approved by Exit. Franchisees must provide the Subfranchisor and Franchisor with the version of the Sales Representative Agreement they are using. The introduction of a person to the Exit System, who is subsequently hired by a Franchise as an Exit Associate, is known as "Sponsoring."
Each Exit Associate is eligible to receive a Sponsoring Bonus for Sponsoring equal to 10% of the gross Commissions generated by the Recruit, up to a maximum of $10,000 per Recruit per calendar year, less applicable Sponsoring Bonus Fees. This bonus is paid by Exit. The sponsoring process is intended to assist Franchisees in attracting a high-quality workforce.