About Network In Action Franchise
Network In Action is a franchise concept built around professional networking and referral services.
Franchising since 2016, the brand provides a structured platform where business owners and professionals connect, exchange referrals, and grow their businesses through meaningful relationships.
Each franchise owner hosts and facilitates three networking groups within their market.
Network In Action Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 15% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | None | 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) and marketing fee (None) 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, but may be implemented in the future. |
| Audit Fee | All costs and expenses associated with the audit, reasonable accounting and legal costs, if audit discloses an understatement of 3% or more. |
| Membership Screening Fee | Greater of $100 or 50% of Membership Initiation Fee per prospective member |
| Business Automation Program Fee | Currently $99 per month, subject to change |
| Additional on-site training and assistance | Currently $500 per diem, plus out-of-pocket costs, per trainer |
| Late Fee and Interest on Overdue Payments | 5% of overdue amount, plus 1.5% interest per month (or maximum legal rate) |
| 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 toward costs determined by Franchisee Advisory Council |
| Operational Deficiency Expenses | Fees not to exceed our actual costs associated with correcting any operational deficiency |
| Insurance Procurement | Fees not to exceed our actual costs associated with obtaining insurance coverage for you, if you fail to do so |
| Costs and Attorneys’ Fees | Will vary under circumstances, due if in default under Franchise Agreement |
| Indemnification | Will vary under circumstances |
| Liquidated Damages | Minimum Royalty Fee multiplied by the number of remaining bimonthly periods in the then-current term of the Franchise Agreement |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately one (1) week of initial training, plus thirteen recorded training sessions. Mandatory annual conventions may also include refresher training. |
| 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 require or franchisee may request additional on-site supervision or supplemental training, for which a per-diem charge (currently $500) plus out-of-pocket costs will apply. Mandatory annual conventions are also held, with a $1,000 fine for non-attendance. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Varies based on population densities and number of businesses in the area, as specified in the Franchise Agreement. |
| Description | Franchisees do not receive an exclusive territory and may face competition from other franchisees or franchisor-owned outlets. A protected territory is specified in the Franchise Agreement, with size and scope determined by factors like population densities and businesses. Franchisees must establish their first Network In Action Group within 90 days, second within 180 days or 20 members, and third within 180 days or 20 members. Failure to meet this schedule may result in territory reduction or refusal to extend the agreement term. Franchisor reserves rights to operate or license businesses outside the territory, use two one-hour sessions per year from franchisee groups, and sell products/services through alternate channels within or outside the territory. |
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 | Written notice 6-12 months prior to term end, compliance with development schedule, no past due monetary obligations or defaults, mutual general release, execution of then-current franchise agreement (which may have different terms/fees), satisfaction of financial responsibility standards, and payment of renewal fee. |
| Transfer Fee | $3,500 |
| Transfer Conditions | All monetary obligations satisfied, no defaults, execution of general release by transferor, transferee designated as Principal (if applicable) and bound by agreement terms, transferee meets franchisor's application qualifications (including financial resources, business reputation, etc.), transferee executes new franchise agreement (which may have different terms/fees), transferee upgrades franchised business to current standards, transferor remains liable for prior obligations, and transferee completes training. |
| Termination for Cause | Automatic termination for insolvency, bankruptcy, or similar financial distress. Termination upon notice for failure to meet development schedule, felony conviction of principal, loss of business right in jurisdiction, unauthorized transfer, false records/reports, disclosure of confidential information, non-compliance with covenants, misuse of proprietary marks, repeated defaults, failure to conduct meetings, or breach of material non-curable provision. Opportunity to cure (7 or 30 days) for certain defaults like non-payment or refusal of inspection. |
| Non-Compete Period | 3 years |
| Non-Compete Details | During the agreement term, franchisee cannot directly or indirectly engage in a competitive business (networking/referral services, hosting networking events, or substantially similar business) or divert members. After termination/expiration/transfer, a 3-year prohibition applies within the territory or 50 miles of the territory/any other Network In Action Business. Exception for less than 5% beneficial interest in publicly traded corporations. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee or its Designated Principal (an individual with at least 10% ownership) must be responsible for the full-time daily supervision, general oversight, and management of the franchised business. A Designated Principal or Community Builder must be designated for each Network In Action Group. All must complete initial training. The franchisor reserves the right to approve the hiring or designation of any Community Builder. |
| Required Suppliers | Franchisee must purchase all additional products and Business Items solely from manufacturers, distributors, providers and suppliers who demonstrate to our continuing reasonable satisfaction the ability to meet our standards and specifications, who possess adequate quality controls and capacity to supply your needs promptly and reliably, and who have been approved by us in the Manuals or otherwise in writing. |
| Supply Restrictions | We may designate a single supplier, which may be us or one of our affiliates, for any Business Item, in which event you must purchase such items exclusively from the designated supplier. |
| 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. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | If financing is extended, it will be limited to 50% of your Franchise Fee, with a maximum repayment period of 12 months and a current annual interest rate of 10%. A promissory note is required, and principals must personally guarantee the debt. No security interest is required. The franchisor does not arrange financing from other sources or guarantee franchisee obligations. |
Network In Action Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Network In Action 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 In Action System Growth
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, NY, NC, ND, OR, RI, SD, TX, VA, WA, WI
Franchisor Financials (Item 21)
Audited by PWR CPA, LLP for year ending December 31st.
Network In Action Franchise — FAQ
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