Network In Action Franchise

Financing Details

Network In Action offers limited financing to franchisees if they cannot secure a loan from a third-party lender. This financing is capped at 50% of the initial franchise fee. Network In Action acts as the lender, and franchisees must sign a promissory note. The repayment period is a maximum of 12 months, with a current annual interest rate of 10%. Franchisees or their principals are required to personally guarantee the debt.

Litigation Summary

Network In Action has a history of litigation. A current case involves BNI Franchising, LLC and BNI Global, LLC, who sued Network In Action on August 22, 2024. BNI accused Network In Action of interfering with contracts, misappropriating trade secrets, and trademark infringement related to the mark GIVERS GAIN. Network In Action denies these allegations and has filed counterclaims, asserting that BNI engaged in monopolization, attempted monopolization, and unfair competition, and that BNI's restrictive covenants are unenforceable. The court has dismissed BNI's original tortious interference claim, but the matter is still ongoing. Previously, on September 9, 2022, Network In Action faced action from the Maryland Securities Division for offering and selling franchises without being registered in Maryland. On February 3, 2023, Network In Action entered into a Consent Order, agreeing to refund one terminated franchisee and offer rescission and refund to another. Network In Action has fully complied with this order. Another concluded action involved the Washington Securities Division. On November 22, 2024, a Stop Order was issued against Network In Action and its franchise director, Scott Talley, alleging the offering of unregistered franchises, material misrepresentations regarding financial performance and territory rights, material omissions in disclosure documents, and violating registration conditions by accepting fees before training completion. On February 19, 2025, Network In Action and Scott Talley entered a Consent Order. This order revoked Network In Action's franchise registration in Washington, prohibited future registration for five years, required an offer of voluntary termination to all Washington franchisees from 2019-2024 without compensation to Network In Action, and a payment of $4,468.75 in investigative costs. Network In Action neither admitted nor denied the findings and is currently complying with the Consent Order.

Renewal Conditions

To renew their franchise agreement, Network In Action franchisees must provide written notice between six and twelve months before their current term ends. They must also be in compliance with the development schedule, have no outstanding monetary or other obligations to Network In Action or its approved suppliers, and not be in default of their franchise agreement. As part of the renewal, they are required to sign a mutual general release and execute Network In Action's then-current franchise agreement, which may include different terms and higher fees. Franchisees must also meet current qualification and training requirements, demonstrate financial responsibility, and pay a renewal fee equal to 25% of the then-current initial franchise fee.

Staffing Notes

Network In Action requires that if the franchisee is an entity, a Designated Principal who holds at least a 10% ownership interest in the franchisee must assume full-time responsibility for the daily supervision and management of the franchised business. The franchisee must also designate either the Designated Principal or a Community Builder to supervise each Network In Action Group, and Network In Action retains the right to approve any Community Builder. If the franchisee chooses to hire additional employees, Network In Action requires them to maintain good member relations, provide competent and courteous service, and adhere to dress codes and minimum standards outlined in the Manuals. Franchisees are solely responsible for all employment decisions and compliance with applicable labor laws.