Network Lead Exchange franchise
2022 filing · October 19, 2022Growing
Network Lead Exchange at a glance
A business referral network that sells memberships in local in-person and online referral chapters to business owners and tradespeople. At the end of 2022 there were 36 Network Lead Exchange locations in the US, all franchised.
The business
- Industry
- Business services
- Franchisor
- Network Lead Exchange, LLC
- The company that sells the franchises
What you pay
- Cost to open
- $12K–$25K
- Fee, build-out and opening working capital
- Franchise fee
- $9,500
- Paid once, when you sign
- Royalty
- 15%
- 15% of gross revenues or a monthly minimum ($100 in year one, $150 in year two, $200 after that), whichever is greater, plus the greater of 1% or $100 a month for marketing
- Brand fund
- 1%
- 1% of gross revenue
- Renewal fee
- $2,500
- When the agreement ends and you sign again
- Agreement length
- 10 years
Where it is
- US locations, 2022
- 36
- Franchised and company-owned
- Franchised
- 36
- Company-owned
- 0
- Change in 3 years
- +34
- Franchised locations, 2020–2022
From Network Lead Exchange, LLC’s 2022 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Network Lead Exchange among all franchises with the same figure.
| Figure | Network Lead Exchange | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $18,700 | Costs less than 99% of franchises |
| Franchise feePaid once, when you sign | $9,500 | Lower than 96% of franchises |
| RoyaltyShare of sales paid to the franchisor | 15% | Higher than 98% of brands with a set rate |
| US locationsFranchised and company-owned | 36 | More than 59% of franchises |
How much a Network Lead Exchange franchise costs
Opening one Network Lead Exchange costs an estimated $12,450 to $24,950. That covers the franchise fee and everything else needed to open, through the first months of working capital. It is one of the franchises under $20K.
The biggest costs are initial franchise fee ($9,500) and marketing materials ($0 to $5,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $9,500 | ||
| Software and Supplies Package | $2,950 | ||
| Travel and Living Expenses (While Attending Initial Training) | $0 | $700 | |
| Market Introduction Program | $0 | $2,000 | |
| Computer Systems | $0 | $1,000 | |
| Office Expenses | $0 | $300 | |
| Marketing Materials | $0 | $5,000 | |
| Licenses and Permits | $0 | $500 | |
| Dues and Subscriptions | $0 | $500 | |
| Professional Fees (lawyer, accountant, etc.) | $0 | $2,000 | |
| Additional funds (for first 3 months) | $0 | $500 | |
| Total | $12,450 | $24,950 | |
Source: Network Lead Exchange, LLC, 2022 filing, page 22
Network Lead Exchange franchise fee
The franchise fee is $9,500. You pay it when you sign the franchise agreement.
Source: Network Lead Exchange, LLC, 2022 filing, page 18
Royalty and ongoing fees
| Royalty | 15% of gross revenues or a monthly minimum ($100 in year one, $150 in year two, $200 after that), whichever is greater, plus the greater of 1% or $100 a month for marketing. |
|---|---|
| Brand or marketing fund | 1% of gross revenue. |
| Technology fee | Either $45 per month or $5 per Member (whichever is greater) |
| Transfer fee | $2,500 or the then |
| Renewal fee | $2,500 |
| Additional Training Fee | $2,500 or then current |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Network Lead Exchange, LLC, 2022 filing, page 19
Other fees as filed, from pages 19–20. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures Network Lead Exchange does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Network Lead Exchange, LLC, 2022 filing, page 37
Growth and closures
Share of franchised locations, 2022 / 2020–2022. Typical means the median: half of brands are above it, half below.
| Measure | Network Lead Exchange | Typical business services brand | Typical franchise |
|---|---|---|---|
| GrowthNet change in franchised locations | +38% / +1700% | 0% / +3.6% | +1.2% / +10% |
| ClosuresTerminated, not renewed or stopped operating | 7.7% / 200% | 5.9% / 25% | 3.9% / 16% |
| Bought backLocations the franchisor took back | 0% / 0% | 0% / 0% | 0% / 0% |
Typical business services brand is the median of the 114 brands in business services franchises with three years of counts.
How Network Lead Exchange compares
Of the 324 business services franchises on this site, Network Lead Exchange is the 16th cheapest to open and the 140th largest by number of locations.
| Figure | Network Lead Exchange | Typical business services brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $12K | $77K | $222K |
| Cost to open, high end | $25K | $136K | $477K |
| Franchise fee | $10K | $45K | $40K |
| Royalty | 15% | 7% | 6% |
| Brand fund | 1% | 2% | 2% |
| US locations | 36 | 32 | 21 |
| Shares earnings figures | No | 187 of 324 | 2,147 of 3,352 |
Typical is the median across the 324 brands in business services franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2020 | 17 (+15) | 0 | +15 | 0 |
| 2021 | 26 (+9) | 0 | +11 | −2 |
| 2022 | 36 (+10) | 0 | +12 | −2 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: home-based franchises and franchise failure rates.
Source: Network Lead Exchange, LLC, 2022 filing, page 38
Who owns Network Lead Exchange?
Network Lead Exchange franchises are sold by Network Lead Exchange, LLC.
From Network Lead Exchange, LLC’s 2022 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on pages 16–18. |
|---|---|
| Bankruptcy | No bankruptcy of the franchisor. A regional vice president filed a personal Chapter 7 bankruptcy in April 2015 and received a discharge in July 2015. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Network Lead Exchange, LLC, 2022 filing, litigation on pages 16–18, bankruptcy on page 18
Network Lead Exchange filings
The figures on this page come from Network Lead Exchange, LLC’s 2022 filing, issued October 19, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | October 19, 2022 | NASAA depository | Costs, fees and locations, 2020–2022 |
Each link opens the filing as a PDF. See the newest filings across all brands.
