Network In Action Franchise Costs, Fees & FDD

Year Business Began: 2014

Franchising Since: 2015

Headquarters: Houston, Texas

Estimated Number of Units: 145

Franchise Description: The franchisor is Network In Action Intl. LLC. Franchisees host and facilitate groups which provide professional networking and referral services, under the name “Network In Action.”
Training Overview: Before the Franchised Business opens, franchisees or their Designated Principal, all of their Network In Action Group leaders known as “Community Builders” and additional persons as the franchisor may require (not to exceed a total of four persons) must complete to the franchisor’s satisfaction all of the initial training requirements. Currently, initial training consists of 38 hours of classroom training. The initial training is currently conducted at the franchisor’s headquarters in Houston, Texas or on-line through its web based applications. In addition, franchisees will be required to attend (in-person or virtually) 13 recorded training sessions as part of their onboarding as a franchisee. The franchisor may hold mandatory annual conventions, at which it may provide refresher training. Franchisees must attend these conventions.

Territory Granted: The Franchise Agreement will specify a protected territory. The size and scope of the territory will be contained in the Franchise Agreement and will be determined based upon various factors such as population density and the number of businesses in the area. During the term of the Franchise Agreement, the franchisor will not establish or operate, nor license any other person to establish or operate, a Network In Action Business in the territory, except as may be permitted under the Franchise Agreement.

Obligations and Restrictions: Franchisees must operate the franchised business in strict conformity with the Franchise Agreement and such standards and specifications as the franchisor may from time to time prescribe in the manuals or otherwise in writing, and shall refrain from deviating from such standards, specifications, and procedures without prior written consent. Franchisees shall be responsible for the full-time daily supervision, general oversight and management of the operations of the franchised business. If the franchisee is not an individual, then the designated principal, who must be reasonably acceptable to the franchisor, must assume this responsibility. Franchisees must carry and sell all products that the franchisor approves and specifies to be offered by all Network In Action businesses, unless the franchisor provides its written approval otherwise.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two renewal terms of five years each are available if requirements are met.

Financial Assistance: Whether the franchisor will extend financing, as well as the amount of financing that it chooses to extend, will vary depending upon the availability of funds, the franchisee’s creditworthiness and the market conditions in the franchisee’s area. If the franchisor chooses to extend financing to franchisees, it will be limited to 50% of the franchise fee. The franchisor does not arrange for financing from other sources. The franchisor does not guarantee a franchisee’s notes, leases or other obligations.

Estimated Initial Investment

Name of Fee	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
ESTIMATED TOTAL	$37,710	$42,700

 
Other Fees

Type of Fee	Amount
Royalty	15% of gross revenues, however, each bimonthly royalty fee payment is subject to a minimum payment amount equal to: (i) $175 beginning 4 months after the Franchise Agreement has been signed, then increasing to $325 beginning 8 months after the Franchise Agreement has been signed, then increasing to $450 beginning 12 months after the Franchise Agreement has been signed and thereafter.
Membership Screening Fee	The greater of $100 for each prospective member who has applied for membership into the franchisee’s Network In Action groups or 50% of the membership initiation fee charged by franchisees to each prospective member who has applied for membership into their Network In Action groups.
Marketing Automation Program Fee	Currently $99 per month, subject to change.
Additional On-Site Training and Assistance	The franchisor’s per-diem charge (which is currently $500, plus its out-of-pocket costs), per trainer.
Fees Related to Computer System and Software	None at this time.
Transfer Fee	$3,500
Renewal Fee	An amount equal to 25% of the then-current initial franchise fee.
Late Fee and Interest on Overdue Payments	A late fee equal to 5% of the overdue amount, and interest equal to 1.5% 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 franchisees fail to attend; and an annual fee toward the costs determined by the Franchisee Advisory Council.
Audit Expenses	All costs and expenses associated with the audit, reasonable accounting and legal costs.
Operational Deficiency Expenses	Fees not to exceed the franchisor’s actual costs associated with correcting any operational deficiency.
Insurance Procurement	Fees not to exceed the franchisor’s actual costs associated with obtaining insurance coverage for franchisees, if they fail to do so.
Costs and Attorneys’ Fees	Will vary under circumstances.
Indemnification	Will vary under circumstances.
Liquidated Damages	Will vary under circumstances.

The above information has been compiled from the FDD of Network In Action. Year of FDD: 2024.

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