At the modeled base case, an active U.S. owner operating the two-group format has about $16,300 of estimated pre-tax owner-operator benefit, while the three-group format has about $58,300. These are independent estimates anchored to 2025 median Gross Revenue in the 2026 Franchise Disclosure Document; Network In Action does not report owner earnings, business profit, EBITDA, Net Income, salary, draws, or distributions.
- Legal franchisor
- Network In Action Intl. LLC, a Texas limited liability company.
- Current disclosure
- 2026 Franchise Disclosure Document, issued April 17, 2026. No matching public copy on an official brand-controlled domain was verified, so FDD citations are unlinked and identify the Item and page.
- Item 19 status
- Official 2025 Gross Revenue only. The relevant current-offer cohorts are 10 franchisee-owned businesses operating two groups and 8 operating three groups.
- Operating model
- A home-based networking and referral service that hosts and facilitates groups; the current offer requires two or three groups and does not require an office lease.
- External benchmark
- U.S. Bureau of Labor Statistics wage data is used only for a delegated-labor illustration, not as evidence of owner income.
- Date checked
- July 16, 2026.
What does Network In Action Item 19 actually measure?
Item 19 measures 2025 Gross Revenue, not annual owner earnings. The official disclosure defines Gross Revenue as revenue related to the franchised business, excluding collected sales taxes. It does not deduct royalties, screening fees, venue costs, marketing, insurance, software, travel, labor, debt service, or other expenses needed to calculate operating profit.
The two-group and three-group tables cover franchisee-owned businesses that were open on January 1, 2025 and remained open through December 31, 2025. Average and median are reported separately, and the observed low and high values describe a small historical sample rather than a promised range.
| Current-offer format | Businesses | Average Gross Revenue | Median Gross Revenue | Observed low–high |
|---|---|---|---|---|
| Two Network In Action Groups | 10 | $35,279 | $36,086 | $11,656–$62,715 |
| Three Network In Action Groups | 8 | $96,535 | $97,187 | $32,690–$169,879 |
Source: 2026 Network In Action Franchise Disclosure Document, Item 19, pp. 36–40. The FDD says the figures came from internal unaudited affiliate statements and franchisee-provided statements, were not prepared under generally accepted accounting principles, and do not reflect operating expenses or costs.
How is estimated annual owner earnings calculated?
The estimate starts with the official 2025 revenue observations, deducts the disclosed royalty, and then applies an explicit allowance for costs that Item 19 omits. It models a mature operating year for the current two-group and three-group formats. Because the owner performs the required supervisory work, the result is labeled estimated owner-operator benefit, not pure business profit.
- Revenue anchors: Conservative, Base, and Upside use the FDD’s observed low, median, and observed high Gross Revenue for each current-offer cohort. Those labels are analytical scenarios, not probabilities or franchisor forecasts.
- Royalty: Item 6 requires the greater of 15% of Gross Revenues or the applicable bimonthly minimum. For a mature year after month 12, the $450 twice-monthly minimum annualizes to $10,800.
- Non-royalty operating costs: The model uses 35% of revenue in Conservative, 25% in Base, and 18% in Upside. These editorial assumptions collectively allow for Membership Screening Fees, meeting venues, local marketing, insurance, software, supplies, travel, and professional services because Item 19 provides no expense statement.
- Owner labor: No salary expense is deducted when the owner or Designated Principal performs daily supervision and group leadership. The result therefore combines residual business cash flow with compensation for work performed.
| Format and scenario | Gross Revenue anchor | Royalty + other-cost allowance | Estimated owner-operator benefit |
|---|---|---|---|
| Two groups · Conservative | $11,656 | $10,800 + $4,080 | −$3,224 |
| Two groups · Base | $36,086 | $10,800 + $9,022 | $16,265 |
| Two groups · Upside | $62,715 | $10,800 + $11,289 | $40,626 |
| Three groups · Conservative | $32,690 | $10,800 + $11,442 | $10,449 |
| Three groups · Base | $97,187 | $14,578 + $24,297 | $58,312 |
| Three groups · Upside | $169,879 | $25,482 + $30,578 | $113,819 |
Two-group and three-group estimates use the same formula but different official Item 19 revenue anchors.
Interpretation: group count and revenue scale matter because the fixed royalty floor consumes a larger share of a low-revenue operation. The chart is not a probability forecast.
Source: 2026 FDD, Item 19, pp. 36–40 and Item 6, pp. 7–8; independent scenario calculations rounded to the nearest $100 in the chart.
How does active owner involvement change the result?
Active owner involvement can be worth roughly the cost of the labor that would otherwise be delegated, but that amount is compensation for work—not passive profit. Item 15 requires the owner or a qualifying Designated Principal to take full-time responsibility for daily supervision, general oversight, and management. Each group must be supervised by that Designated Principal or an approved Community Builder.
For illustration, the delegated model subtracts $36,564: one-half of the 2024 BLS median annual wage of $60,940 for meeting, convention, and event planners in religious, grantmaking, civic, professional, and similar organizations, plus a 20% payroll-burden assumption. The half-time staffing level and payroll burden are editorial assumptions; the FDD does not specify Community Builder hours or compensation. BLS wage data also exclude self-employed workers, so they are a labor-cost proxy rather than an owner-income benchmark.
Each row subtracts the same $36,564 delegated-labor illustration from the owner-operator benefit.
Interpretation: delegating group-level labor does not create a passive franchise. The FDD still assigns full-time daily supervision and management to the owner or Designated Principal, and the staffing cost can erase the two-group base benefit.
Sources: 2026 FDD, Item 15, pp. 32–33; BLS Meeting, Convention, and Event Planners profile. The BLS Occupational Employment and Wage Statistics tables provide the underlying wage-data framework.
Why does the minimum royalty matter most to a two-group business?
The mature minimum royalty is the largest clearly quantified recurring burden at lower revenue. Once the agreement has been signed for 12 months, each twice-monthly royalty payment is the greater of 15% of Gross Revenues or $450. The percentage royalty does not exceed the annualized $10,800 floor until Gross Revenue reaches $72,000.
| Revenue point | Annual royalty | Effective royalty rate | Meaning |
|---|---|---|---|
| Two-group median: $36,086 | $10,800 | 29.9% | The minimum, not 15%, controls. |
| Royalty crossover: $72,000 | $10,800 | 15.0% | Above this point, the percentage calculation controls. |
| Three-group median: $97,187 | $14,578 | 15.0% | The percentage royalty controls. |
Item 6 also requires a Membership Screening Fee equal to the greater of $100 per prospective member or 50% of the Membership Initiation Fee. The annual total cannot be calculated from Item 19 because applicant counts and the split between initiation fees and recurring membership revenue are not disclosed. Optional Business Automation is listed at $99 per month; Item 11 estimates Zoom at about $25 per month and lists optional Connection Coach access at $390 per year. These optional services are not separately deducted in the scenarios because the non-royalty operating-cost allowance is intended to capture ordinary software and administrative costs without double counting.
Source: 2026 FDD, Item 6, pp. 7–8 and Item 11, computer-system disclosures. Item 7’s $37,710–$52,700 initial investment is a startup requirement, not an annual operating expense, and is not subtracted from one year of revenue.
How much confidence should a buyer place in this earnings range?
Confidence is LIMITED because the calculation is anchored to official same-brand revenue but depends materially on undisclosed expenses and owner labor. The 2025 two-group and three-group cohorts contain only 10 and 8 businesses, respectively, and Item 19 excludes 25 franchisee-owned group franchises that ceased during the year.
- Small samples: one or two unusual businesses can materially shift an average, range, or observed high in cohorts of 8 or 10.
- Survivorship limitation: the excluded 25 groups consisted of 7 terminations or closures, 2 non-renewals, and 16 that ceased for other reasons; none had been open less than 12 months.
- Revenue-only disclosure: Item 19 provides no Gross Profit, Operating Profit, EBITDA, Net Income, owner compensation, or expense ratios.
- Group versus owner counts: Item 20’s 108 year-end franchised outlets are group/outlet records, not a disclosed count of 108 owners. Per-group data cannot be silently converted to per-owner income.
- Expense uncertainty: member acquisition, pricing mix, screening activity, restaurant or meeting costs, insurance, local marketing, and Community Builder compensation can vary substantially.
- Historical extremes: the observed lows and highs are not quartiles, probabilities, targets, or evidence that a new buyer will reproduce either endpoint.
What is—and is not—included in the owner-earnings figures?
The published figures are pre-tax operating scenarios, not salary, take-home pay, or after-tax income. They apply to one mature Network In Action business operating two or three groups for a full year and should not be multiplied into a multi-unit portfolio without modeling development timing, shared overhead, staffing, and group maturity.
- Gross Revenue
- The FDD-defined top line before operating expenses. It is the official Item 19 measure.
- Estimated owner-operator benefit
- Modeled cash after royalty and ordinary operating-cost allowances, before assigning a wage to the active owner’s labor.
- Delegated residual
- Owner-operator benefit after subtracting the stated half-time wage and payroll-burden illustration. It is not an FDD-reported result.
- Owner salary, draw, or distributions
- Not disclosed by Item 19 and not assumed. Payment form depends on the business entity, cash needs, and owner decisions.
- Financing
- Interest and principal are excluded because financed amounts and borrower terms vary. Item 10 financing terms do not establish a common debt structure for all buyers.
- Personal taxes
- Excluded. Federal, state, and local tax outcomes depend on entity structure, jurisdiction, deductions, and owner circumstances.
- Startup investment and capital spending
- Excluded from annual operating earnings. Initial investment, working capital, later equipment, and capital expenditures are separate cash requirements.
What should a buyer verify before relying on these estimates?
A buyer should reproduce the earnings bridge with actual records from comparable two-group and three-group operators. The strongest next evidence is the written substantiation supporting Item 19, followed by franchisee interviews that separate Gross Revenue, recurring fees, ordinary expenses, owner hours, and delegated labor.
- Request Item 19 written substantiation and confirm how each business and group was assigned to the 2025 cohort.
- Ask two-group and three-group franchisees for 12-month profit-and-loss statements with royalty, screening fees, venues, insurance, software, travel, marketing, and professional fees separated.
- Verify active members, annual member price, initiation-fee mix, applicant-to-member conversion, churn, and unpaid accounts for each group.
- Ask owners to separate business residual profit from the value of their own sales, recruiting, event, and relationship-management labor.
- Ask whether Community Builders are employees or contractors, their hours and compensation, and what oversight the Designated Principal still performs.
- Contact former franchisees and operators associated with 2025 terminations, non-renewals, and other cessations to understand whether economics, owner availability, territory conditions, or other factors drove the exit.
- Model financing interest and principal separately using the buyer’s actual amount, rate, term, and guarantees; do not treat the operating estimate as after-debt cash.