Network Lead Exchange Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Network Lead Exchange is a business networking franchise running local groups where member businesses share referrals and leads. Franchisees organize and manage chapters, recruiting members and facilitating lead exchanges for membership revenue.
FranchiseVerdict summary · 2026
A Network Lead Exchange franchise requires a total initial investment of $12K – $25K, including a $10K franchise fee. The 2022 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $12K – $25K
- 4th pct Business Serv…
- Avg gross sales
- N/A
- Royalty
- N/A
- Units
- 36
- 32nd pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $12K – $25K including a $10K franchise fee.
- RETURNSFY ended June 30, 2022 audited statements. Total Income $271,164 = Franchise Fees $230,060 + Royalty Fees $40,754 + Other Income $350. Note: Item 8 text cites "total revenue of $309,774," but $309,774 is actually Total Current Assets on the balance sheet (apparent FDD typo); the income statement Total Income is $271,164.
- RISKVerdict D (Below average), verdict score 33/100 (higher is better).
- FLAGBankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Network Lead Exchange, LLC
- Parent company
- UFG Holdings Group, LLC
- CEO title
- Chief Executive Officer
- Ray Titus
- Incorporated in
- FL
- HQ
- 2121 Vista Parkway, West Palm Beach, Florida 33411
- Auditor
- Milbery & Kesselman, CPAs, LLC
- Audited financials
- Franchisor revenue
- $271K
- vs $228K prior year
Overview
About
- CEO
- Ray Titus
- Headquarters
- FL
- Founded
- 2018
- FDD year
- 2022
- States available
- 9
Can you afford it, and what does the money buy?
Entry cost runs 93% below the typical business services franchise.
Source: FDD 2022 · Items 5–7
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $10K | $10K |
| Working capital (3–6 mo) | $0 | $500 |
| Equipment, build-out, other | $3K | $15K |
| Total initial investment | $12K | $25K |
Source: Network Lead Exchange 2022 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $12K – $25K
- Top 40% of category vs category
- Liquid capital req'd
- $0 – $500
- Top 40% of category vs category
- Franchise fee
- $10K – $10K
- Top 40% of category vs category
- Royalty
- 15% of gross revenues or minimum royalty of $100/month (y…
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 61.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $45 |
| Transfer fee | $3K |
| Renewal fee | $3K |
| Total fee load | 61.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Network Lead Exchange did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Network Lead Exchange unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
633%
Above the 30–60% band. Verify revenue is per-unit average
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2022 FDD
Financial Performance
FY ended June 30, 2022 audited statements. Total Income $271,164 = Franchise Fees $230,060 + Royalty Fees $40,754 + Other Income $350. Note: Item 8 text cites "total revenue of $309,774," but $309,774 is actually Total Current Assets on the balance sheet (apparent FDD typo); the income statement Total Income is $271,164.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 61.0% — above the Business Services average of 11.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System expanding at 111.8% CAGR over 3 years across 36 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services averages
How Network Lead Exchange Compares
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 36
- Opened
- 12
- Last reporting year
- Closed
- 2
- Turnover rate
- 5.6%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +111.8%
- Net unit change over 3 years
- 3-yr CAGR
- +111.8%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 12
- Closed (3yr)
- 0
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 16 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Undisclosed financial performance, affiliate litigation history, and aggressive royalty structures create meaningful risk in a small, unproven lead-generation system.
Litigation (Item 3)
Four disclosed actions, all relating to affiliates: (1) FTC v. Minuteman Press/Speedy Sign-A-Rama (1993/1998 injunction re Signarama); (2) Maryland consent order re Signarama (1996); (3) California DFPI consent order re TGG (2021); (4) California DFPI consent orders re TGG, GCZ, and UFG (2022 trade show). NLX itself has no pending, completed, or restrictive order litigation.
Bankruptcy (Item 4)
Disclosed in last 7 years
Sean Joseph Palmer, Regional Vice President, filed Chapter 7 bankruptcy on April 21, 2015 (Case No. 15-01601-TOM7, Northern District of Alabama). Discharge granted July 20, 2015.
Audited financials (Item 21)
Yes · Milbery & Kesselman, CPAs, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 33 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 61.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | 2,000 to 3,000 registered businesses |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | West Palm Beach, Florida |
| Jury trial waiver | No |
| Governing law | FL |
| Litigation count | 4 |
View Item 3 litigation summary
Four disclosed actions, all relating to affiliates: (1) FTC v. Minuteman Press/Speedy Sign-A-Rama (1993/1998 injunction re Signarama); (2) Maryland consent order re Signarama (1996); (3) California DFPI consent order re TGG (2021); (4) California DFPI consent orders re TGG, GCZ, and UFG (2022 trade show). NLX itself has no pending, completed, or restrictive order litigation.
Items 10, 11
Training & Operations
- Classroom training
- 3 hrs
- On-the-job training
- 0 hrs
- Training location
- Virtual (initial required); West Palm Beach, FL (optional additional in-person)
- Time to open
- 1 mo
- From signing to launch
- Site selection
- Franchisee (home-based business expected)
- Franchisor financing
- Not offered
- Item 10
- POS system
- Network LEX website or online portal
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Network LEX website or online portal
Item 20 · call current owners
Franchisee Contacts
43 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Network Lead Exchange · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Network Lead Exchange franchise?
The total investment to open a Network Lead Exchange franchise ranges from $12K – $25K, with an initial franchise fee of $10K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Network Lead Exchange franchise owners earn?
Network Lead Exchange does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Network Lead Exchange FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Network Lead Exchange FDD and qualifies whose outlets they describe.
What is Network Lead Exchange's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Network Lead Exchange (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Network Lead Exchange franchise locations are there?
As of their most recent FDD filing, Network Lead Exchange has 36 total units in the United States, including 36 franchised units and 0 company-owned units. 12 new units were opened in the latest reporting year.
Is Network Lead Exchange a good franchise to buy?
FranchiseVerdict rates Network Lead Exchange as a D-grade franchise with a verdict score of 33 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.