About Network Lead Exchange Franchise
Network Lead Exchange is a business referral network franchise where owners build and manage chapters of business owners and tradespeople who exchange quality referrals.
Operating under UFG Holdings Group, LLC and franchising since 2019, the brand offers both online and in person networking formats that help members generate new business through a structured commission based referral system.
The franchise fee is $9,500.
Network Lead Exchange Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $9,500 | One-time payment upon signing |
| Royalty Fee | 15% of gross revenues or a minimum royalty amount ($100/month first year, $150/month second year, $200/month third year and thereafter), whichever is greater. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of gross revenues or $100 per month (whichever is greater). We reserve the right to increase the Marketing Fee to 4% in the future. | National brand fund |
| Total Investment Range | $12,450 – $25,245 | Includes build-out, inventory, working capital |
The investment range of $12K–$25K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (15% of gross revenues or a minimum royalty amount ($100/month first year, $150/month second year, $200/month third year and thereafter), whichever is greater.) and marketing fee (1% of gross revenues or $100 per month (whichever is greater). We reserve the right to increase the Marketing Fee to 4% in the future.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $9,500 | $9,500 |
| Software and Supplies Package | $2,950 | $3,245 |
| Travel and Living Expenses (While Attending Initial Training) | $0 | $700 |
| Market Introduction Program | $0 | $2,000 |
| Computer Systems | $0 | $1,000 |
| Office Expenses | $0 | $300 |
| Marketing Materials | $0 | $5,000 |
| Licenses and Permits | $0 | $500 |
| Dues and Subscriptions | $0 | $500 |
| Professional Fees (lawyer, accountant, etc.) | $0 | $2,000 |
| Additional funds (for first 3 months) | $0 | $500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $2,500 or the then current transfer fee (whichever is greater). |
| Renewal Fee | $2,500 |
| Technology Fee | Either $45 per month or $5 per Member (whichever is greater). Monthly. |
| New Chapter Fee | $4,500 Per New Chapter |
| Additional Training Fee | $2,500 or then current fee for each person who attends additional training where the fees are not covered by the initial franchise fee |
| Non-compliance fee | $500 (initial), then $250 per week |
| Reimbursement | Amount that we spend on your behalf, plus 10% |
| Interest on late payment | 18% per year (or, if such payment exceeds the maximum allowed by law, then interest at the highest rate allowed by law) |
| Costs of collection | Our actual costs |
| Customer complaint resolution | Our expenses |
| Non-compliance cure costs and fee | Our out-of-pocket costs and internal cost allocation, plus 10% |
| Indemnity | Our costs and losses from any legal action related to the operation of your franchise |
| Prevailing party’s legal costs | Our attorney fees, court costs, and other expenses of a legal proceeding, if we are the prevailing party |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 Hours |
| Classroom Training | 3 Hours |
| On-the-Job Training | N/A |
| Training Location | Virtual |
| Additional Training | At your option, you may choose to attend an optional additional training program held at our national headquarters in West Palm Beach, Florida. The cost is $2,500.00, plus travel, lodging, and meals. This program consists of 8-12 hours of classroom training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected Franchise Territory |
| Exclusive Territory | Yes |
| Territory Size | between 2,000 to 3,000 registered businesses |
| Description | A geographic area defined and named by us, containing between 2,000 to 3,000 registered businesses. We will not open or operate company-owned NLX Businesses or grant additional NLX franchises selling similar goods/services under similar marks within your Protected Franchise Territory. Continuation of exclusive rights depends on maintaining a minimum yearly gross revenue of $10,000 per territory. We reserve the right to open/franchise non-standard chapters (e.g., at universities, hospitals, malls, drug stores, supermarkets) within the Territory without compensation to franchisee. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | up to two additional 10-year terms |
| Renewal Fee | $2,500 |
| Renewal Conditions | Give advance notice (90-180 days prior to term end); be in compliance; conform business to then-current standards for new franchisees; pay a renewal fee of $2,500; sign then-current form of franchise agreement (which may be materially different); sign general release. |
| Transfer Fee | $2,500 or the then current transfer fee (whichever is greater). |
| Transfer Conditions | NLX receives transfer fee; proposed assignee completes application, meets standards, and is approved; assignee is not a Competitor; assignee executes then-current franchise agreement; franchisee has paid all monetary obligations and is not in default; assignee and owners/employees undergo required training; franchisee and transferee execute general release; business complies with System Standards. |
| Termination for Cause | Non-payment (15 days to cure); failure to comply with System Standard (15 days to cure); other breach (30 days to cure); misrepresentation/omission of material facts; false reports; bankruptcy; failure to complete initial training; failure to open for business; material violation of laws, confidentiality, non-compete, or transfer; abandonment; slander/libel; two or more defaults in 12 months; cross-termination; felony charge/conviction. |
| Non-Compete Period | During the term of the franchise: unlimited. After termination/expiration: two years. |
| Non-Compete Details | During term: Neither you, any owner, or spouse may have ownership interest in, or be engaged or employed by, any competitor. Post-term (2 years): No ownership or employment by a competitor operating within 25 miles of your location, and cannot solicit or accept business from any Member of your Chapter on behalf of a competitor. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must personally devote best efforts to the direct operation of your business. You are required to personally sign the franchise agreement, even if you form a corporation, partnership or other business entity for the operation of the franchise. Your business must at all times be under your direct supervision. |
| Required Suppliers | We have the right to require you to purchase or lease all goods, services, supplies, fixtures, equipment, inventory, computer hardware and software, real estate, or comparable items related to establishing or operating your business (1) either from us, our designee, or from suppliers approved by us: or (2) according to our specifications. You are required to purchase from us the Software and Supplies Package. |
| Supply Restrictions | If you want to use a supplier that is not on our list of approved suppliers, you must request our approval in writing. We will grant or revoke approvals of suppliers based on criteria appropriate to the situation, which may include evaluations of the supplier’s capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. There is no fee for us to review or approve an alternate supplier. |
| Franchisor Revenue from Suppliers | We do not currently receive payments from any designated suppliers based on purchases by you or other franchisees. However, the franchise agreement does not prohibit us from doing so. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligations. |
Network Lead Exchange Franchise Earnings — Item 19
Network Lead Exchange does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Network Lead Exchange Litigation & Risk Flags
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 Lead Exchange System Growth
Network Lead Exchange currently operates 36 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 15 | 0 | 17 |
| 2021 | 11 | 2 | 26 |
| 2022 | 12 | 3 | 36 |
Transfers: 0 | Closures: 5
State Registrations
Registered in 16 states: CA, CT, HI, IL, IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Milbery & Kesselman, CPAs, LLC for year ending June 30.
Network Lead Exchange Franchise — FAQ
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