Bottom line
- Total investment $12K – $25K including a $10K franchise fee.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 61/100.
- System growing at 111.8% CAGR over 3 years with 36 total units — strong expansion trajectory.
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 Lead Exchange unit return on the cash you put in?
Unlevered ROIC · per unit
628%
Above typical band (30–60%)
Overview
About
Network Lead Exchange franchisees operate as lead generation and business networking intermediaries, generating sales leads for member businesses within a protected territory. Day-to-day activities include recruiting and managing member accounts, facilitating lead exchanges, hosting networking events, and managing digital lead distribution platforms. Revenue is primarily generated through membership fees and transaction-based lead sales.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Undisclosed financial performance, affiliate litigation history, and aggressive royalty structures create meaningful risk in a small, unproven lead-generation system.
Score breakdown · what drove the 61 / 100 rating
- 01MEDNo Item 19 financial performance data disclosed — cannot validate the 38.5% unit growth claim or assess actual franchisee profitability
- 02HIGHParent company litigation across three affiliate brands (Signarama, Great Greek Franchising, Graze Craze) involving franchise registration and sales practice violations suggests systemic compliance issues
- 03MINORMinimum royalty structure ($100/mo → $200/mo) creates fixed overhead burden that may exceed earnings for underperforming locations, particularly in months 1-12
- 04MEDSmall system size (36 units) with no disclosed average revenue limits ability to benchmark performance and indicates limited franchisor operational maturity
- 05MINORAggressive minimum royalty escalation (100% increase by year 3) combined with 15% gross revenue royalty creates dual pressure on thin-margin lead-generation businesses
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
58 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Network Lead Exchange · FDD (2022) PDF