Corporate Connections logo

Corporate Connections Franchise

Audited Financials
Business ServicesEst. 2017Charlotte, NC
www.corporateconnections.com

Risk Score

Pending analysis

Investment Range

$4,600,592 - $4,840,592

Franchise Fee

$4,500,000

Min Cash Required

$25,000

0

Business Summary

CorporateConnections operates a master franchised business that recruits, sells, and provides ongoing support to individual CorporateConnections businesses within a designated territory. These individual CorporateConnections businesses offer business leadership training, structured peer performance teams, and referral networking services to groups of senior-level business professionals, executives, and entrepreneurs. The subfranchised CorporateConnections businesses train their members on how to grow their own businesses through qualified referrals using the CorporateConnections system and format.

Corporate History

CorporateConnections Franchising, LLC was established as a Delaware limited liability company in 2017. The CorporateConnections business model, which offers business leadership training, structured peer performance teams, and referral networking services for senior-level business professionals, was initially developed by its affiliates, BNI Global, LLC and BNI Worldwide Development, Ltd., starting in 2002 in Toronto, Canada. The concept was then refined through testing in various locations globally. CorporateConnections opened its first company-owned chapter in 2006. CorporateConnections Franchising, LLC began offering unit franchises in 2018 and master franchises in June 2024. As of the FDD issuance date, CorporateConnections operates one unit franchise in the United States and has master franchise agreements in 28 countries internationally.

Financial Overview

Investment Range

$4,600,592 - $4,840,592

Franchise Fee (Low)

$4,500,000

Franchise Fee (High)

$4,500,000

Minimum Cash Required

$25,000

Royalty %

7%

Marketing %

2%

Equipment Costs (Low)

$1,500

Equipment Costs (High)

$13,000

Working Capital

$17,500

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

CorporateConnections Franchising, LLC shows a growing cash balance, ending 2023 with $253,512, up from $78,512 in 2022, and reported net incomes of $11,054 in 2023 and $10,722 in 2022. However, the company has a substantial accumulated deficit in member's equity, showing negative balances of $(167,231) in 2023 and $(178,286) in 2022. This indicates that total liabilities exceed total assets. A significant portion of its liabilities consists of amounts payable to related parties, totaling $392,744 in 2023 and $214,960 in 2022. The financial statements note that if CorporateConnections Franchising, LLC operated as a stand-alone entity, it might have incurred additional expenses beyond those allocated for administrative support from its affiliated companies. The auditors issued an unqualified opinion, but noted management's responsibility to evaluate potential going concern issues.

Financing Details

CorporateConnections Franchising, LLC does not offer any direct or indirect financing options to its franchisees. Additionally, CorporateConnections Franchising, LLC does not guarantee any notes, leases, or obligations for its franchisees.

Performance Metrics

Total US Locations

0

Franchised Units

0

Corporate Units

0

Franchising Since

2018

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew, CorporateConnections Franchising, LLC master franchisees must send a written request to CorporateConnections Franchising, LLC between six months and one year before their agreement expires. Renewal is subject to several conditions including: the master franchisee and its owners must sign a general release of claims; pay a renewal fee equal to 50% of the Master Franchise Fee; agree upon a new development schedule with CorporateConnections Franchising, LLC (or accept the one designated by CorporateConnections Franchising, LLC); sign CorporateConnections Franchising, LLC's then-current master franchise agreement; ensure the master franchise is in full compliance with all current standards for new master franchises; complete any required training; execute all necessary documents; resolve any internal ownership disputes; pass a criminal history and financial background check; and participate in a Territory Business Plan Meeting to present their growth strategy.

Training & Support Program

Franchisor Assistance

CorporateConnections Franchising, LLC provides comprehensive support to its master franchisees. Before opening, CorporateConnections Franchising, LLC offers an Initial Training Program for the master franchisee and their Key Person, which includes Executive Director onboarding, Chapter Support Training, and Chapter Launch Training. The master franchisee also receives training at the annual Franchise Leadership Summit, and CorporateConnections Franchising, LLC approves the master franchisee's plan for defining franchisable regions and designating suppliers. On an ongoing basis, CorporateConnections Franchising, LLC provides marketing assistance, confidential criteria for selecting subfranchisees, and advisory support for the operation and promotion of CorporateConnections businesses. They may host annual Global Leadership and Franchise Leadership Summits, and offer additional training, seminars, advice, and assistance as needed. While CorporateConnections Franchising, LLC may suggest pricing for services, master franchisees are not required to follow these suggestions.

Initial Training Hours

24

Training Location

Charlotte, North Carolina, or video conferencing

Ongoing Support

CorporateConnections Franchising, LLC provides a range of ongoing support to its master franchisees. This includes marketing assistance, guidance on selecting and approving subfranchisees, and advisory support for business operations and promotion. CorporateConnections Franchising, LLC may host annual Global Leadership and Franchise Leadership Summits, and offer additional training, seminars, advice, and general assistance as needed. Master franchisees pay a Global Marketing and Technology Fee which funds system-wide advertising, marketing, and technological advancements, including the Operating Management System, accounting software, and IT support services. CorporateConnections Franchising, LLC also maintains and updates operations manuals. Master franchisees must comply with CorporateConnections Franchising, LLC's internet and privacy policies, and may be required to use specific customer relationship management (CRM) systems, meeting management tools, and payment technology integrated into the system.

Franchise Requirements

Ideal Candidate Profile

CorporateConnections Franchising seeks master franchisees to recruit, sell, and support CorporateConnections businesses in a designated territory. CorporateConnections requires master franchisees to undergo financial and criminal background checks. The designated Key Person, who can be an owner or a full-time supervisor, must reside in the territory and dedicate their full-time attention and effort to supporting and operating the CorporateConnections Master Franchise. This individual must meet CorporateConnections' standards and have the authority to make decisions for the master franchisee. Candidates should also demonstrate educational, managerial, and business standards, possess good moral character, a strong business reputation, and a solid credit rating. Prior related business experience demonstrating aptitude and ability to operate the business is also considered.

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Home-Based

Owner Participation

Supervisory

Territory Type

exclusive

Staff Count

1

Territory Size Requirements

CorporateConnections Franchising grants master franchisees the right to operate within a designated "Territory," which can encompass an entire country or a portion of one. The specific boundaries of the master franchisee's territory are not defined by standard metrics in the FDD. Instead, the master franchisee must submit a proposed Country Map of franchisable regions to CorporateConnections for review and written approval. This map details factors such as population, small and medium-sized enterprise (SME) count, market penetration index, geographical barriers, and social context for defining regions. For subfranchise regions within the master territory, their size is determined by mutual agreement between CorporateConnections and the master franchisee on a rational basis, often considering factors like population and the number of employees.

Staffing Notes

CorporateConnections Franchising, LLC requires master franchisees who are also BNI® franchisees to employ at least one full-time Key Person to manage the CorporateConnections Master Franchise. If the master franchisee is not a BNI® franchisee, one of the owners may serve as the Key Person. This Key Person must dedicate full-time effort to supporting and operating the master franchise. Additionally, master franchisees must employ a "Master Trainer" who has completed the required training programs and is responsible for training subfranchisees within the territory. All Key Persons, Master Trainers, and managers/supervisors must sign non-compete, non-disclosure, and non-solicitation agreements.