BNI Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$53,395 - $273,145
Franchise Fee
$35,000
Total US Locations
187
Business Summary
BNI Franchising, LLC grants franchisees the right to open and operate a territory composed of referral groups known as Chapters. BNI Chapters consist of business professionals who are trained and instructed by the franchise on how to grow their own businesses through qualified referrals using a structured and formatted system. Members of these Chapters meet weekly to exchange qualified referrals.
Corporate History
BNI Franchising, LLC was officially organized on November 6, 2014, in Delaware. However, the BNI® franchise system has a longer history, dating back to 1991 with its predecessor, BNI Franchise Corp. BNI Franchise Corp. operated and offered similar franchises for business networking referral groups until December 2014. At that time, BNI Holdings, LLC, an affiliate, acquired all assets and existing franchise agreements from BNI Franchise Corp. Subsequently, BNI Franchising, LLC obtained the exclusive rights to offer new franchise agreements and utilize the BNI intellectual property. The core business of BNI involves granting franchises to individuals who open and manage referral groups, known as Chapters, composed of non-competing business professionals, helping them grow their businesses through structured networking.
Financial Overview
Investment Range
$53,395 - $273,145
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$147,500
Royalty %
20%
Equipment Costs (Low)
$7,200
Equipment Costs (High)
$8,400
Working Capital
$3,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
BNI Franchising, LLC's financial statements indicate that the company is profitable, reporting net income of $1,373,770 in 2024 and $1,220,883 in 2023. BNI Franchising, LLC also had positive cash flow from operating activities in both years. However, there was a significant decrease in cash from $3,058,055 at the end of 2023 to $366,207 at the end of 2024, primarily due to large distributions in 2024 totaling over $3.4 million. Despite this, BNI Franchising, LLC maintains a healthy working capital position, with current assets exceeding current liabilities. The auditors did not express any substantial doubt about BNI Franchising, LLC's ability to continue as a going concern.
Financing Details
BNI Franchising, LLC does not offer any direct or indirect financing to its franchisees. BNI Franchising, LLC also does not guarantee any notes, leases, or obligations for franchisees. Therefore, BNI franchisees will need to secure their own funding through external sources.
Performance Metrics
Total US Locations
187
Franchised Units
99
Corporate Units
88
Franchising Since
1991
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
5
Litigation Summary
BNI Franchising, LLC has disclosed a total of five litigation cases. One case is currently pending: BNI Franchising, LLC and its affiliate initiated a lawsuit in August 2024 against Network In Action Intl., LLC for alleged tortious interference with contract, violations of the Defend Trade Secrets Act, violations of the Texas Uniform Trade Secrets Act, and federal trademark infringement. The defendants filed counterclaims in December 2024, alleging monopolization and unfair competition. BNI Franchising, LLC intends to file a motion to dismiss these counterclaims, and a trial date has not yet been scheduled. The other four cases have been resolved. These include two arbitrations and two lawsuits filed between 2016 and 2017. These previous disputes involved claims from former master franchisees and franchisees regarding wrongful non-renewal of agreements, breach of implied covenant of good faith, violation of state franchise laws, and trademark-related issues. All of these matters were either settled through mediation or negotiations, or were withdrawn by the claimants.
Bankruptcy History
BNI Franchising, LLC has no bankruptcy history to disclose in this FDD document.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew a BNI franchise, BNI franchisees must submit a written request to BNI between six months and one year before their agreement expires. BNI has 90 days to respond. If approved, franchisees and their owners must ensure the franchised business complies with current BNI standards for new franchises, including any required re-imaging. They must sign a general release of claims against BNI, pass criminal history and financial background checks, and participate in a Regional Business Plan Meeting to present their vision for growth. BNI franchisees are also required to sign BNI's then-current franchise agreement, which may contain different terms, pay a renewal fee equal to 25% of the current Initial Franchise Fee, and complete any additional training BNI requires.
Training & Support Program
Franchisor Assistance
Before a BNI franchisee opens their business, BNI designates the franchise's territory, advises on staff training methods, provides initial supplies and software, conducts mandatory Executive Director Training (along with Support Director Consultant Orientation and Launch Director Consultant Orientation), and loans copies of the operations manuals. During operation, BNI offers email and telephone support, marketing assistance to promote the franchise, information from ongoing research and development to improve the business, and produces, prints, and distributes newsletters. BNI may also provide additional training, periodic seminars, advice, and assistance at its discretion, and may pay a referral fee to franchisees who refer new prospective BNI franchisees.
Initial Training Hours
76
Training Location
Charlotte, North Carolina, or virtually
Ongoing Support
After opening, BNI franchisees receive ongoing support and assistance via email or telephone and marketing assistance to promote their BNI franchise. BNI provides information from its continuing research and development efforts, and produces, prints, and distributes newsletters. BNI may also offer additional training, periodic seminars, advice, and assistance at its discretion. BNI franchisees are required to attend an annual National Conference, an annual ED Summit, and the Global Convention at least twice during the term of their franchise agreement. BNI reserves the right to require franchisees to utilize a BNI Member Success Center (a call center for members), use a specific meeting management tool (like BNI+), and integrate with specific payment technology and reporting systems for royalty payments.
Franchise Requirements
Ideal Candidate Profile
BNI Franchising, LLC seeks a principal owner for its franchise. This individual must successfully complete the Executive Director training program and be prepared to directly own not less than 51% of the equity ownership of the franchisee entity. The principal owner is required to reside within the designated territory and dedicate their full-time and exclusive attention and effort to operating the BNI franchise, without operating any other business unless explicitly approved by the franchisor in writing. This role requires personal supervision over the business operations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
home-based
Owner Participation
Full-Time
Territory Type
non-exclusive
Territory Size Requirements
BNI Franchising, LLC defines its franchise territories by a sufficient number of zip codes or other appropriate designations to encompass a population of 250,000 people or more. In certain limited circumstances, BNI Franchising, LLC may grant a territory with a population of less than 250,000. The franchisor relies on a third-party source for population data to determine the total population within a territory.
Staffing Notes
BNI Franchising, LLC requires each franchised business to be supervised by a designated Principal Owner who holds at least 51% equity in the entity and has successfully completed the Executive Director, Support Director Consultant, and Launch Director Consultant training programs. This Principal Owner must reside within the territory and dedicate their full-time, exclusive attention to the operation of the BNI franchise, unless BNI Franchising, LLC provides written approval for a manager to fulfill this role. If a manager is approved, they must also complete the same training, reside in the territory, and devote full-time attention to the business. BNI Franchising, LLC franchisees may utilize Directors/Director Consultants to assist in managing and operating Chapters, which involves training members and supervising Chapter leadership teams. These Directors/Director Consultants must be qualified by BNI Franchising, LLC, complete the Support Director Consultant and Launch Director Consultant Orientations, and sign a Non-Disclosure, Non-Solicitation, and Non-Compete Agreement. Franchisees are responsible for maintaining adequate staffing levels and ensuring all personnel adhere to BNI Franchising, LLC's standards and ethical conduct, and communicate cooperatively with BNI personnel. Franchisees or trained Director/Director Consultants must visit each Chapter within the Territory at least once every six to eight weeks.