Bni
Bottom line
- Total investment $53K – $194K including a $35K franchise fee, 20.0% ongoing royalty.
- Average unit revenue of $344K/year (median $262K).
- Rated CAUTION with a risk score of 70/100. SBA loan default rate of 0.0% across 8 loans (below the industry average).
- System contracting at -6.6% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one BNI unit return on the cash you put in?
Unlevered ROIC · per unit
0%
Negative
Overview
About
BNI (Business Network International) franchisees operate local networking chapters where business owners meet weekly to exchange leads, referrals, and business opportunities. Franchisees manage chapter meetings, recruit members, ensure compliance with BNI operating procedures, and generate revenue through membership dues and event fees.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 31 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
BNI presents HIGH RISK due to system contraction, significant pending litigation, unsustainable royalty structure, and governance failures that have resulted in international master franchise disputes.
Score breakdown · what drove the 70 / 100 rating
- 01MINORDeclining unit count (-2.9% YoY) indicates system contraction and franchisee attrition
- 02HIGHPending litigation for tortious interference and trademark infringement creates legal and operational uncertainty
- 03MINORHistory of master franchise agreement disputes across multiple countries (India, China, California) suggests systemic governance issues
- 04MINOR20% royalty on gross revenues is exceptionally high and leaves minimal margin for profitability
- 05MINORNo Item 19 (average net income) disclosure prevents accurate ROI assessment and raises transparency concerns
- 06MINORHigh initial investment range ($53K-$193K) combined with aggressive royalties creates poor risk-reward profile
- 07MINORShrinking franchisee base suggests business model may not be sustainable or scalable
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
64 numbers
One-time purchase · CSV download · Validation questions included
FDD download
BNI · FDD (2025) PDF