We are a franchising company which promotes and sells franchises for the operation of Network In Aetion businesses. We do not own or operate a business of the type being franchised, although,, our manager; Gerarda Sanchez, operates two Network In Action business groups. Except as described below in connection with the offering of Netwbfk In Action, area representative franchises, neithef we nor Our affiliates have offered franchises in any other line of business br engaged in any business activities other than,those described in this Disclosure Document. We have offered franchises since March 20:16.
We have no. predecessors or parent. The original Network In Action business group, located in the Heights area of Houston, Texas, was established, in January 2015 by our Manager, Gerarda Sanchez, dbing business as Network In Action. ;She established tiie second Network In Action business groups located in the Energy Corridor- area of Houston, Texas, in June 201'5. In March, 2016 she purchased two franchisee-owned Network in Action businesses; one near Fulshear, Texas and one near Kaly, Texas; which were subsequently sold to other franchisees in August 20:I6. Our Manager's Network In Action business is not offering, and has never offered, franchises m any line of business.
We are offering, franchises for businesses that operate Under the name “Network In Action,” (each a “Netw.ofk In Action Business(es)'0- Each Network In Action Business is established and operated using the format and system we developed (the; “Network In Action System”), and host and facilitate groups (each a “Network In Action Group”), which provide professional networking and referral services. Network In Action Businesses feature and operate under the Proprietary Marks (as described below). All products and services offered for sale at: a Network In Action Business are subject to our.
When you sign the Franchise Agreement you must pay us an initial franchise fee of $40i000 for the; right to establish three (3) Network in Action Groups or $50,000 for the right to establish four (4) Network in Action Groups (the “Franchise Fee”).. The Franchise Fee will be fully earned when paid md npn-refundable in consideration Of administrative and other expenses we incur in entering; into the Franchise Agreement and for pur Ipst or deferred Opportunities to enter into the Franchise Agreement with others.
Whether we will extend Financing, as well as the amount of finaricing that; we choose; to extend, will, vary depending upon the availabiUty of funds, your credit worthiness and the market conditions in your area. If we provide financing to you, you must submit monthly financial information to us, such as an income statement, balance sheet, and supporting documents, as we periodically ;specify and in the formats we specify.
The FTC's Franchise Rule; permits a franchisor to provide information about the; actual or potential financial performance of its fi-anchised ,and/or franchisor-owned outlets, if there is a reasonable for the information, and if the information is ineluded in the; Disclosure Document. Fiiiancial perfonnance information that differs from that included in Item 19 may be given only if: (1:) a franchisor provides the: actual records of an existing outlet you are: considering buyingj or (2) a franchisor suppleinents the information provided in this Itern 19, for exairnple, by providing information about possible performance at a particular location or under particular circumstances.