About Network In Action Franchise
Network In Action is a professional networking and referral services franchise where owners host and manage groups of business professionals who connect and exchange leads.
Franchising since 2016, the concept provides a structured system for facilitating meaningful business relationships and driving referral based growth for members across a variety of industries.
The franchise fee is $35,000.
Network In Action Franchise Cost & Fees
Minimum Investment
$38K
Average Investment
$40K
Maximum Investment
$43K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 15% of Gross Revenues, subject to a minimum payment amount (Minimum Royalty Fee) starting at $175 bimonthly and increasing to $700 bimonthly of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 0 | National brand fund |
| Total Investment Range | $37,710 – $42,700 | Includes build-out, inventory, working capital |
The investment range of $38K–$43K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (15% of Gross Revenues, subject to a minimum payment amount (Minimum Royalty Fee) starting at $175 bimonthly and increasing to $700 bimonthly) and marketing fee (0) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Business Licenses & Permits | $10 | $50 |
| Computer and Related Technology | $1,000 | $1,500 |
| Other Professional Fees | $1,000 | $2,000 |
| Insurance Deposit | $300 | $450 |
| Initial Inventory of Equipment, Supplies and Marketing Materials | $400 | $700 |
| Training Expenses | $0 | $2,000 |
| Additional Funds (for the initial 3 months of operations) | $0 | $1,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $3,500 |
| Renewal Fee | An amount equal to 25% of our then-current initial franchise fee |
| Technology Fee | None at this time |
| Audit Fee | All costs and expenses associated with the audit, reasonable accounting and legal costs. Payable only if audit discloses an understatement of 3% or more. |
| Membership Screening Fee | Greater of $100 for each prospective member or 50% of the Membership Initiation Fee |
| Business Automation Program Fee | Currently $99 per month, subject to change (optional) |
| Additional on-site training and assistance | Currently $500 per-diem charge, plus out-of-pocket costs, per trainer |
| Late Fee and Interest on Overdue Payments | 5% of overdue amount, and 1.5% interest per month (but not more than any maximum rate set by law) |
| Prohibited Product or Service Fine | $250 per day |
| Yearly Convention, Summit or Retreat Fee and Fine | $1,000 penalty if fail to attend; annual fee determined by Franchisee Advisory Council |
| Operational Deficiency Expenses | Fees not to exceed actual costs associated with correcting any operational deficiency |
| Insurance Procurement | Fees not to exceed actual costs associated with obtaining insurance coverage |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Liquidated Damages | Minimum Royalty Fee multiplied by the number of remaining bimonthly periods in the then-current term |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately one (1) week |
| Classroom Training | 38 |
| On-the-Job Training | 0 |
| Training Location | Our headquarters in Houston, Texas or on-line through our web based applications. |
| Additional Training | Franchisor may make available additional training programs, generally three virtual training sessions annually. If additional on-site supervision or supplemental training is required or requested, franchisee pays a per-diem charge (currently $500) plus out-of-pocket costs per trainer. Mandatory annual conventions may also include refresher training, with a $1,000 fine for non-attendance. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Description | Franchisee will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels. The Franchise Agreement specifies a protected Territory, with size and scope determined by population densities and businesses. Franchisee must establish the first Network In Action Group within 90 days, the second within 180 days or when the first group reaches 20 members, and the third within 180 days of the second or when the second group reaches 20 members. Failure to meet this schedule may result in territory reduction or refusal to extend the agreement term. Franchisor retains rights to operate or license businesses outside the territory, and to sell products/services through alternate channels within the territory without compensation to franchisee. Franchisee can recruit members and market outside the territory to increase group membership. Relocation within the territory requires prior written consent. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | Ten (10) years |
| Renewal Term | Two (2) renewal terms of 5 years each |
| Renewal Fee | An amount equal to 25% of our then-current initial franchise fee |
| Renewal Conditions | Notice, satisfaction of monetary obligations, compliance with Franchise Agreement, mutual release, sign new Franchise Agreement, pay renewal fee, and others; see Sections 2.2.1 - 2.2.10 in Franchise Agreement. New agreement may have materially different terms and conditions. |
| Transfer Fee | $3,500 |
| Transfer Conditions | Franchisor has the right to approve transfers and can apply standards to determine whether the proposed transferee meets requirements for a new franchisee. Conditions include: release, signature of new Franchise Agreement, payment of transfer fee, and others; see Sections 15.3.1 – 15.3.11 and 15.4 of the Franchise Agreement. |
| Termination for Cause | Default under Franchise Agreement, bankruptcy, abandonment, and other grounds; see Section 16 of the Franchise Agreement. Under the U.S. Bankruptcy Code, we may not be able to terminate the agreement merely because of a bankruptcy filing. |
| Non-Compete Period | During the term of the franchise: Sections 18.2 and 18.5. After termination/expiration: Sections 18.3 and 18.5 (three year prohibition). |
| Non-Compete Details | During the term of the franchise, prohibition on engaging in any other business offering similar products, and soliciting or diverting customers to other businesses. After termination or expiration, a three-year prohibition similar to the above, within the Territory, or within 50 miles of the Territory or any other Network In Action Business in operation on the effective date of termination or expiration located anywhere. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee or its Designated Principal must provide full-time daily supervision and management of the franchised business. If the franchisee is not an individual, the Designated Principal must be an individual with at least a 10% ownership interest in the franchisee legal entity and be reasonably acceptable to the franchisor. A Designated Principal or Community Builder must supervise each Network In Action Group. All pre-opening training must be completed by the franchisee/Designated Principal and Community Builders. Owners and Community Builders may be required to sign guaranty, indemnification, and acknowledgment forms. |
| Required Suppliers | Franchisee must purchase all equipment, signs, supplies, services, products, marketing materials and promotional programs for the establishment and operation of the Franchised Business from Suppliers designated or approved in writing by Franchisor. |
| Supply Restrictions | Franchisor may designate a single supplier for any Business Item, in which event franchisee must purchase such items exclusively from the designated supplier. Franchisor and/or its affiliates may receive payments or other compensation from suppliers. Franchisor may limit the number of approved suppliers with whom franchisee may deal, designate sources that franchisee must use for some or all products and services, and refuse to approve new suppliers if not in the best interest of the system. |
| Franchisor Revenue from Suppliers | For the fiscal year ending December 31, 2023, we have not received revenue as a result of payments or other compensation from suppliers on account of the suppliers’ dealings with us, you, or other Network In Action Businesses in the Network In Action System. We expect to earn a rebate of 10% related to fees paid by franchisees to Thryv, our approved supplier for the Business Automation Program. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | If Franchisor extends financing, it will be limited to 50% of the Franchise Fee, with a maximum repayment period of 12 months. The current interest rate is 10% annually, subject to change. No security interest is required. Principals must personally guarantee the debt and waive homestead exemptions. Franchisor reserves the right to sell, assign, or discount the promissory note to a third party. Franchisor does not arrange for financing from other sources nor guarantee franchisee notes, leases, or other obligations. |
Network In Action Franchise Earnings — Item 19
Average Revenue
$34K
Median Revenue
$39K
Revenue Range
$11K – $67K
Sample Size
16 units
Past financial performance does not guarantee future results. Individual results will vary.
Network In Action Litigation & Risk Flags
Clean Litigation RecordNetwork In Action has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Network In Action System Growth
Total Units
100
Franchised
97
Company-Owned
3
Network In Action currently operates 97 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2021 | 43 | 6 | 83 |
| 2022 | 7 | 3 | 87 |
| 2023 | 19 | 6 | 100 |
Transfers: 3 | Closures: 6
State Registrations
Registered in 19 states: CA, CT, HI, IL, IN, MD, MI, MN, NE, NC, NY, ND, OR, RI, SD, TX, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$810K
Net Income
$-144,781
Total Assets
$581K
Audited by PWR CPA, LLP for year ending December 31st.
Network In Action Franchise — FAQ
The total investment to open a Network In Action franchise ranges from $37,710 to $42,700, per their Franchise Disclosure Document. This includes the initial franchise fee of $35,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Network In Action charges a royalty fee of 15% of Gross Revenues, subject to a minimum payment amount (Minimum Royalty Fee) starting at $175 bimonthly and increasing to $700 bimonthly of gross sales, plus a 0 contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Network In Action Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Network In Action to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Network In Action franchise owners report average revenue of $34K and median revenue of $39K. This is based on a sample of 16 units. Past performance does not guarantee future results.
Network In Action has been franchising since 2016. The FDD shows an investment range of $37,710-$42,700, a 15% of Gross Revenues, subject to a minimum payment amount (Minimum Royalty Fee) starting at $175 bimonthly and increasing to $700 bimonthly royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $35,000 and the total investment ranges from $37,710 to $42,700 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Network In Action and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Network In Action or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com