Bottom line
- Total investment $38K – $43K including a $35K franchise fee, 15.0% ongoing royalty.
- Average unit revenue of $42K/year (median $42K).
- Rated AVOID with a risk score of 79/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
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 Network In Action unit return on the cash you put in?
Unlevered ROIC · per unit
5%
Below typical band (30–60%)
Overview
About
Network In Action franchisees operate business networking and referral-based membership groups, typically holding regular breakfast or lunch meetings where members exchange leads and build professional relationships. Day-to-day responsibilities include recruiting and retaining members, scheduling meetings, managing group dynamics, and generating referrals to drive membership renewals and local chapter growth.
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 · 27 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
Network In Action exhibits critical risk factors: collapsing franchisee base (-12% YoY), active multi-party litigation over IP and trade secrets, franchisor going concern issues, prior securities violations, and unsustainable unit economics (15% royalty on ~$42K revenue).
Score breakdown · what drove the 79 / 100 rating
- 01MEDSevere unit decline of 12% YoY (106 units) indicates system contraction and potential franchisee dissatisfaction
- 02HIGHGoing Concern status = FALSE, signaling potential financial viability questions for the franchisor itself
- 03HIGHActive litigation involving tortious interference, trade secrets, and trademark infringement suggests internal conflict and IP vulnerability
- 04MINORHigh royalty rate of 15% on average revenue of $42,302 yields only ~$6,345 gross before expenses—profitability extremely marginal
- 05MINORTwo concluded securities violations (Maryland, Washington) for unregistered sales and misrepresentations indicate compliance/disclosure failures
- 06MEDAverage net income not disclosed despite Item 19 disclosure requirement—red flag for franchisor transparency
- 07MINOR$35,000 franchise fee + $37,710–$42,700 startup costs represent poor ROI given low average revenues and high royalty burden
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
89 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Network In Action · FDD (2025) PDF