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How Much Does A BNI Global Franchise Cost?
If you’re looking for a well-established network that offers mutual business benefits, BNI could be one of your options. It’s a member-focused business referral network that empowers members to have long-lasting connections with like-minded business professionals. As a result, members enjoy more immense opportunities and better potential for business growth.
If you’ve always wondered about BNI Global franchise cost, it’s your lucky day! In this article, we’re tackling the figures you need to operate the business as well as other duties you have to comply with.
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Franchise Description
Before we get right into the BNI Global franchise cost, let’s get to know the brand a little bit better. In 1984, Dr. Ivan Misner was exploring ways to increase clients for his personal consulting business. He coordinated with friends Carolyn Denny, CPA; Lee Shimmin, insurance agent; and Mike Ryan, a financial planner, to create a plan. In 1985, they held their first meeting in Arcadia, California.
In 1991, The Network became Business Network International. Later, they focused the name as BNI for trademark purposes. Two years later, BNI opened internationally, with the Thunder Bay, Ontario Chapter being the first one outside the US.
Today, BNI Franchising, LLC, franchises the Chapters through its head office in Charlotte, North Carolina. As mentioned earlier, Chapters have members who are business professionals. That said, franchisees instruct and train members on how to grow each one’s business through qualified referrals. The franchisee provides the structure and format to enable the group to maximize growth and profit.
The franchisees, who are also called Executive Directors, help start and grow chapters. They earn revenue from membership fees. Because members enjoy the bigger benefit by expanding their Chapter, they also act as recruiters to grow the group.
Training Overview
Aside from shouldering the BNI Global franchise cost, a franchisee must also be ready to invest time in training programs. The head office requires applicants to undergo a two-part training program. The first one is a five-day Executive Director Training, while the second one is a three-day Support Director Consultant Orientation.
Both courses are available around two to three times a year in their head office in Charlotte or in other locations across the US. They also attend advanced training programs at least once every year. The location and time of these advanced training programs depends on the arrangements made by the franchisor.
Obligations and Restrictions
Financial aspects and the BNI Global franchise cost aside, there are also duties you need to comply with if you wish to open a Chapter. Franchise owners should directly supervise the Chapter. If they can’t do so for any reason, they need to assign a person to assume the duties required under the agreement.
Unlike other types of franchised businesses, BNI Global doesn’t grant exclusive territory. That said, they will receive rights to open a Chapter within an area, which is called a “region” in the agreement. In addition to that, there’s no minimum region size and no criteria as to region size. You can’t operate the network outside the region specified in the agreement.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $45,000 | $45,000 |
| Orientation and Conference and Travel Expenses | $2,000 | $4,000 |
| Training Fees | $1,600 | $2,800 |
| Professional Fees | $2,000 | $10,000 |
| Supplies, Equipment and Software | $6,000 | $7,000 |
| Computer | $500 | $1,500 |
| Advertising Expenses | $500 | $1,000 |
| Deposits | $500 | $1,000 |
| Insurance | $500 | $4,000 |
| Video Conferencing License | $80 | $6,880 |
| Additional Funds – 3 Months | $1,000 | $5,000 |
| ESTIMATED TOTAL | $59,680 | $88,180 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Continuing Royalty | 20% of the previous month’s gross revenues for the franchise as outlined and subject to the conditions set out in the FDD. |
| Member Success Kit Fee | Then current-fee, currently $13.65 per kit. |
| Indemnification | Will vary depending upon loss. |
| Fee for the Franchisor’s Audit of the Franchise for the Franchise Agreement | Cost of audit if franchisees understated gross revenues by more than 2% and any unpaid fees owed to the franchisor. |
| Application Fee | $250 |
| Renewal Fee | Either (a) 25% of the then-current Initial Franchise Fee or (b) if franchisees executed the Franchise Agreement subject to renewal prior to April 18, 2016, then $4,000. |
| Transfer Fee | 5% of the sales price (inclusive of any non-cash consideration using market valuation) or 25% of the then-current initial franchise fee, whichever is less. |
| Assignment Fee for the Franchise Agreement | $350 |
| Support Services Brand Compliance Fee for the Franchise Agreement | $500 per month. |
| Late Fee | Upon being late, 3% of the outstanding amount, or the maximum allowed by law, whichever is less. |
| Interest for the Franchise Agreement | 1.5% per month or the maximum allowed by law, whichever is less, on any balance unpaid by more than 30 days. |
| Administrative Processing Fee for the Franchise Agreement | $350 |
| R&D Contribution | Varies; currently $24 annually per every new and renewing member. |
| Video Conferencing License | Varies; $80 per license if the franchisee utilizes Zoom video conferencing. |
Did You Know?
Here are a few fun things to know about the business:
- BNI’s mission is pretty simple – to help members boost business growth through a referral marketing program. The program is designed to be positive and structured, allowing each person to develop meaningful connections with other professionals.
- BNI prides itself on having an unmatched global network. At present, it has 270,000 members, 9,500 global Chapters, and 12.2 million member referrals worldwide. But the network goes beyond mere connections; it also translates to profit. In fact, they boast of a $16.7 billion member-generated business.
- BNI operates with an underlying philosophy – Givers Gain®. What does it mean? Simple – by providing business to others, you will also get business in return. This philosophy is basically based on the law of reciprocity. By doing their best to help others, co-members do their best to return their kindness. And this process boosts the network’s reach far better than any individual can do for themselves.
- The network has set parameters to measure one’s commitment to Givers Gain®. They call it the Power of One concept, which calls for:
- One meeting per member every week
- A referral per member every week
- A One-to-One per member every week
- One visitor per member every month
- A Chapter Education Unit (CEU) per member per month
- The Chapter screens aspiring members. If one is a good fit, they will be invited to apply. That said, not just about anyone can be a member. To enjoy the perks of more sales at a lower cost and less effort, one must be fully committed to the network.
In a nutshell, it’s a professional community that helps each member. If the BNI Global franchise cost is something that fits your investment budget, it’s surely a venture worth exploring.