From whose commission are the Transaction Fees deducted for Exit?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
ed for all transactions.
c) Referrals
All Transaction Fees that pertain to referral Commissions shall be treated in the same manner as all transactions except in the case of referrals between EXIT offices. The Transaction Fees that pertain to referral Commissions between EXIT offices shall be split in direct proportion to the percentage of Commission earned. For example, the
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, Transaction Fees are deducted from the Sales Representative's portion of the commission. These fees are payable by the Franchise to the Subfranchise and Exit at the finalization of the transaction side. This means that when a real estate transaction closes, a portion of the commission that would normally go to the sales representative is instead directed to cover these fees.
The amount of the transaction fee depends on the gross commission generated by the franchise. For example, if the gross commission to the franchise is between $250.01 and $2,500, the transaction fee is $50. If the gross commission is over $25,000, the transaction fee is $400. These fees are applicable to both the selling and buying sides of a transaction.
For a prospective Exit franchisee, this means that the fees will impact the commission payouts to their sales representatives. It is important to understand how these fees are structured and to factor them into commission calculations to ensure accurate and transparent compensation for sales representatives. Additionally, the FDD specifies that all commissions are to be entered into MEMO and will be subject to transaction fees unless the gross revenue is $250.00 or less.