UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549

                                    FORM 10-Q

(Mark One)

[X]               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
                  OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended                MARCH 31, 1997                    
                               -------------------------------------------------

OR

[ ]                    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                                     THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________________ to __________________________

Commission file number 0-4028

                             TRANSMEDIA NETWORK INC.
             -----------------------------------------------------
             (Exact name of Registrant as specified in its charter)

              DELAWARE                                       84-6028875    
    --------------------------------                 ---------------------------
     (State of other jurisdiction of                       (I.R.S. Employer
      incorporation or organization)                     Identification No.)

  11900 BISCAYNE BOULEVARD, MIAMI, FLORIDA                      33181
  ------------------------------------------------------------------------------
 (Address of principal executive offices)                      (zip code)

                                  305-892-3300
                         ------------------------------                         
                         (Registrant's telephone number,
                              including area code)

Indicate by (X) whether the registrant  (1)  has filed all reports required to 
be filed by

Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months and (2) has been subject to such filing requirements for the past 90
days.

                                                        Yes [X]  No [ ]

The number of shares outstanding of the issuer's Common Stock, $.02 par value,
as of April 30, 1997: 10,189,956


<PAGE>

                                    I N D E X

                    TRANSMEDIA NETWORK INC. AND SUBSIDIARIES

PART  I. FINANCIAL INFORMATION                                     PAGE NO.
------------------------------                

Item 1.           Financial Statements:

                  Consolidated Balance Sheets --                     3, 4
                  March 31, 1997 (unaudited)
                  and September 30, 1996 (audited)

                  Consolidated Statements of Income                  5
                  Three and six months ended March 31,
                  1997 and 1996 (unaudited)

                  Consolidated Statements of Cash Flows--            6, 7
                  Six months ended March 31, 1997
                  and 1996 (unaudited)

                  Notes to Unaudited Consolidated                    8, 9, 10
                  Financial Statements

Item 2.           Management's Discussion and Analysis               10, 11, 12
                  of Financial Condition and Results of
                  Operations


PART II. OTHER INFORMATION                                           12

SIGNATURE                                                            13



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<PAGE>
<TABLE>
<CAPTION>


                             TRANSMEDIA NETWORK INC.
                           CONSOLIDATED BALANCE SHEETS
                      MARCH 31, 1997 AND SEPTEMBER 30, 1996
                                 (in thousands)

                                                                          March 31,              *September 30,
                                                                            1997                      1996
                                                                            ----                      ----
                                                                        (unaudited)
<S>                                                                       <C>                   <C>    
ASSETS

Current assets:
          Cash and cash equivalents                                       $    6,313             $ 3,603
          Restricted cash                                                      2,928                  --
          Accounts receivable, net                                             2,987               2,617
          Rights-to-Receive:
            Unrestricted                                                       4,721              37,526
            Securitized and owned by Trust                                    33,232                  --
          Prepaid expenses and other current assets                            3,357               1,928
                                                                          ----------            -------- 

               Total current assets                                           53,538              45,674

Securities available for sale, at fair value                                   1,031               1,868

Restricted deposits and investment                                             1,980

                                                                                                      --

Property and equipment                                                         9,790               7,794
          Less accumulated depreciation                                        3,165               2,130
                                                                          ----------            -------- 
                                                                               6,625               5,664
                                                                          ----------            -------- 

Excess of cost over net assets acquired and
  other intangible assets                                                      4,954
                                                                                                      14

Other assets                                                                   2,289               1,294
                                                                          ----------            -------- 

               Total assets                                               $   70,417            $ 54,514
                                                                          ==========            ======== 
</TABLE>



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<PAGE>
<TABLE>
<CAPTION>

                             TRANSMEDIA NETWORK INC.
                           CONSOLIDATED BALANCE SHEETS
                      MARCH 31, 1997 AND SEPTEMBER 30, 1996
                                 (in thousands)
                                   (continued)

                                                                   March 31,               *September 30,
                                                                    1997                         1996
                                                                    ----                         ----
                                                                  (unaudited)
<S>                                                              <C>                       <C>   
LIABILITIES AND
STOCKHOLDERS' EQUITY

Current liabilities:
          Accounts payable - rights to receive                    $    4,608                $   4,785
          Accounts payable - reimbursable
            tax and tips                                                 406                      485
          Accounts payable - other                                     2,478                    2,679
          Accrued expenses                                               813                      773
                                                                    --------                 --------

               Total current liabilities                               8,305                    8,722

Secured non-recourse notes payable                                    33,000                      --

Line of credit                                                           --                    15,000

Deferred membership fee income                                         3,112                    4,103
                                                                       

Other long-term liabilities                                            1,608                      936
                                                                   ---------                 --------

               Total liabilities                                      46,025                   28,761
                                                                   ---------                 --------
Stockholders' equity:
Preferred stock - par value $.10 per share;
     authorized 1,000,000 shares; none issued                             --                       --
Common stock - par value $.02 per share; 
     authorized 20,000,000 shares; issued
     and outstanding: 10,189,956 at March 31, 
     1997 and 10,126,926 at September 30, 1996                           204                      202

Additional paid-in capital                                            10,698                   10,547
Unrealized gain on securities available
     for sale                                                            466                      985
Retained earnings                                                     13,024                   14,019
                                                                  ----------                 --------

               Total stockholders' equity                             24,392                   25,753
                                                                  ----------                 --------

               Total liabilities and stockholders' equity         $   70,417                 $ 54,514
                                                                  ==========                 ========
</TABLE>
See notes to consolidated financial statements

*The balance sheet at September 30, 1996 is derived from the registrant's
audited consoldiated financial statements 


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<PAGE>
<TABLE>
<CAPTION>


                    TRANSMEDIA NETWORK INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF OPERATIONS
            THREE MONTHS AND SIX MONTHS ENDED MARCH 31, 1997 AND 1996
                                   (Unaudited)
                     (in thousands, except income per share)

                                                       Three Months Ended                 Six Months Ended
                                                             March 31,                        March 31,
                                                       1997         1996                  1997        1996
                                                       ----         ----                  ----        ----
<S>                                                     <C>          <C>              <C>          <C>    
Operating revenue:
     Sale of rights-to-receive:
          Owned by Company                              $    2,664    $ 22,743         $ 21,787     $ 43,411
          Owned by Trust                                    23,809          --           27,367           --
                                                        ----------   ---------        ---------     --------

               Gross sales                                  26,473      22,743           49,154       43,411

          Cost of sales                                     15,410      12,459           28,386       23,809
          Cardmember discounts                               6,056       5,367           11,290       10,560
                                                        ----------   ---------        ---------     --------

     Net revenues from rights-to-receive                     5,007       4,917            9,478        9,042

     Membership and renewal fee income                       1,855       1,597            3,798        3,034
     Franchise fee income                                      316         361              776          765
     Commission income                                         105         133              208          286
                                                         ---------   ---------        ---------     --------
               Total operating revenues                      7,283       7,008           14,260       13,127
                                                         ---------   ---------        ---------     --------


Operating expenses:

     Selling, general & administrative expenses              6,478       4,618           12,019        8,876
     Cardmember acquisition expenses                         1,076       1,561            2,516        2,132
                                                         ---------   ---------        ---------      -------

               Total operating expenses                      7,554       6,179           14,535       11,008
                                                         ---------   ---------        ---------      -------

                    Operating income (loss)                   (271)        829             (275)       2,119
                                                             

Other income (expense):
     Interest and other income                                 152          66              203          109
     Interest and other expense                               (826)       (150)          (1,203)        (224)
                                                        ----------   ---------        ---------      -------   
                                                             

                    Income (loss) before taxes                (945)        745           (1,275)       2,004
                                                                               

Income tax provision (benefit)                                (358)        283             (484)         761
                                                        ----------   ---------        ---------      -------
                                                                                               
                                                                                                

                    Net income (loss)                   $     (587)  $     462        $    (791)     $ 1,243
                                                        ==========   =========        =========      =======

Income (loss) per common and common equivalent share:
                    Primary and fully diluted           $    (0.06)  $    0.05        $   (0.08)   $    0.12
                                                        ==========   =========        =========    =========

Weighted average number of common and 
 common equivalent shares outstanding:
                    Primary and fully diluted               10,222      10,297           10,206       10,318
                                                        ==========   =========        =========     ========   
</TABLE>

See notes to consolidated financial statements


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<PAGE>
<TABLE>
<CAPTION>


                    TRANSMEDIA NETWORK INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                    SIX MONTHS ENDED MARCH 31, 1997 AND 1996
                                   (Unaudited)
                                 (in thousands)

                                                                                           1997               1996
                                                                                           ----               ----
<S>                                                                                  <C>                 <C>   
Cash flows from operating activities:

          Net income (loss)                                                          $    (791)          $    1,242
          Adjustments to reconcile net income (loss) to net cash used in
          operating activities:
               Depreciation and amortization                                              1,112                 538
               Provision for rights-to-receive losses                                     2,121                 806
                                                                                                              

          Increase (decrease) from changes in:
               Accounts receivable                                                         (371)             (1,321)
               Rights-to-receive                                                         (2,548)             (3,976)
               Prepaid expenses and other current assets                                 (1,428)               (707)
               Other assets                                                                  25                  (8)
               Accounts payable - Rights to receive                                        (176)             (1,934)
               Accounts payable - reimbursable
                 tax and tips                                                               (79)                198
               Accounts payable - other                                                    (201)                203
               Income taxes payable                                                           -                 (23)
               Accrued expenses                                                              37                 (61)
               Deferred membership income                                                  (990)                240
                                                                                        -------             -------

                    Net cash used in operating activities                                (3,289)             (4,803)
                                                                                        -------             -------
Cash flows from investing activities:

          Additions to property and equipment                                            (1,996)             (1,399)
          Excess of cost over net asset acquired and
            intangible assets                                                            (5,017)                --
          Increase in restricted deposits and investments

                                                                                           (990)                --
                                                                                       --------            --------
                    Net cash used in investing activities                                (8,003)             (1,399)
                                                                                       --------            --------

</TABLE>


                                                                    (Continued)

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<PAGE>
<TABLE>
<CAPTION>

                    TRANSMEDIA NETWORK INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                    SIX MONTHS ENDED MARCH 31, 1997 AND 1996
                                 (in thousands)
                                   (Continued)

                                                                             1997                 1996
                                                                             ----                 ----

<S>                                                                          <C>                <C>    
Cash flows from financing activities

          Proceeds from issuance of secured
            non-recourse notes                                               $ 31,978                 --
          Net borrowings (repayments) on note payable
            bank under revolving line of credit                               (15,000)          $  6,000
          Increase in restricted cash                                          (2,928)                --
          Dividends paid                                                         (201)              (201)
          Conversion of warrants and options for
            common stock, net of tax benefits                                     153                  4
                                                                            ---------         ----------

                    Net cash provided by financing activities                  14,002              5,803
                                                                            ---------         ----------

                    Net increase (decrease) in cash and
                      cash equivalents                                          2,710               (399)

Cash and cash equivalents at beginning of period                                3,603              2,270
                                                                           ----------         ----------    

Cash and cash equivalents at end of period                                 $    6,313          $   1,871
                                                                           ==========         ==========


Supplemental disclosure of cash flow information:

          Cash paid during the periods for:

               Interest                                                    $    1,061          $     164
                                                                           ==========         ==========

               Income taxes                                                $      978          $     840
                                                                           ==========         ==========


</TABLE>

See notes to consolidated financial statements


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<PAGE>

                    TRANSMEDIA NETWORK INC. AND SUBSIDIARIES

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.       Basis of Presentation

         The balance sheet as of September 30, 1996 was derived from the
registrant's audited consolidated financial statements.

         The information presented in each of the included unaudited
consolidated financial statements, in the opinion of management, reflects all
adjustments necessary to a fair statement of the results for all interim
periods. The results for the three month and six-month periods ended March 31,
1997 are not necessarily indicative of the results to be expected for the full
year.

         The consolidated financial statements, as presented, are in summarized
form, and footnote disclosures normally included in financial statements
presented in accordance with generally accepted accounting principles, have been
condensed or omitted. Complete disclosures for the year ended September 30, 1996
are presented in the Company's 10K filing which includes audited consolidated
financial statements.

         Cost of sales is composed of the cost of rights-to-receive sold,
provision for rights-to-receive losses and processing fees.

         Certain prior year amounts have been reclassified to conform with the
current presentation.

2.       Sale of Rights-to-Receive

         On December 24, 1996, the Company made an initial transfer of $33
million of its rights-to-receive to a special purpose corporation ("SPC"), an
indirect wholly owned subsidiary, as part of a revolving securitization. The
rights-to-receive, which were sold to the SPC without recourse, were in turn
transferred to a limited liability corporation ("Issuer"), which issued $33
million of fixed rate securities in a private placement to various third party
investors.

         In exchange for the rights-to-receive, which have a retail value of
approximately $66 million before cardmember discounts, the Company received
approximately $32 million, after transaction costs, and a 1% equity interest in
the Issuer. Future excess cash flows, expected to be generated from the
securitized assets as the rights-to-receive are exchanged for meals by Company
cardmembers, are to be remitted to the Company on a monthly basis as a return on
capital from the Issuer. Excess cash flows are determined after payments of
interest to noteholders and investors, as well as trustee and servicing fees. It
is anticipated that the net revenue from securitized assets will be received in
approximately the same amount and within the same time frame that such revenue
would have been received had the securitization not taken place.
Rights-to-receive currently held by the Issuer, as well as cash and certain
deposits restricted under the securitization agreement, have been separately
depicted in the consolidated balance sheet.

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<PAGE>

         The private placement certificates have a five-year term before
amortization of principal and have an interest rate of 7.4%. During this
revolving period, the Issuer is responsible for the ongoing purchase of
rights-to-receive from the Company to ensure that the initial pool of $33
million is continually replenished as the rights-to-receive are utilized by
cardmembers. It is anticipated that replenishment of rights-to-receive will
provide for a continuous stream of additional net revenue throughout the period.

         The Company's intention in executing the revolving securitization
transaction was to provide current liquidity, as well as a platform for future
growth, at a cost of funds lower than has been historically available to the
Company. This was accomplished by, among other things, isolating the
rights-to-receive beyond the reach of the Company or its creditors in the
unlikely event of bankruptcy or other receivership through a transfer of assets
that constitutes a true sale at law. It was also the Company's belief that the
structure of the transaction provided for derecognition of the rights-to-receive
and treatment of the securitization as off-balance sheet financing under
generally accepted accounting principles.

         In March of 1997, the Company was advised by the SEC staff that while
the transfers of assets may be a true sale under applicable legal principles,
the second transfer of assets from the SPC to the Issuer should not be
characterized as a sale under applicable generally accepted accounting
principles, thus precluding the derecognition of the rights-to-receive and
resulting in the presentation of the transaction as secured non-recourse
financing on the consolidated balance sheet of the Company.

3.       Line of Credit

         The Company formerly maintained a $20 million line of credit. As a
result of the sale of rights-to-receive described in Note 2 above, the
outstanding obligation under the line of credit was refinanced and the credit
facility was terminated on December 24, 1996.

4.       Purchase of Franchise

         On November 15, 1996, the Company entered into a purchase agreement
with The Western Transmedia Company, Inc. ("Western"), a franchisee of the
Company. Under the terms of the agreement, the Company reacquired for cash the
right to operate its business in California, Oregon, Washington and a portion of
Nevada, Western's rights-to-receive and its furniture, fixtures and equipment,
as well as the assumption of certain obligations. The transaction closed on
January 2, 1997. The purchase price was approximately $7,454, of which $4,750
represented the cost of the franchise.

5.       Income (Loss) per Common and Common Equivalent Share

         Primary earnings (loss) per share were based on the weighted average
number of common and common equivalent shares outstanding during the period
presented. Equivalent shares consist of those shares issuable upon the assumed
exercise price of stock options and warrants calculated under the treasury stock
method, based on average stock market prices in the periods.

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<PAGE>

         Fully diluted earnings (loss) per share were computed using the
weighted average number of common and common equivalent shares outstanding in
the periods, assuming exercise of options and warrants calculated under the
treasury stock method, based on average stock market prices at the end of the
periods.

Item 2.  Management's Discussion and Analysis of Financial Condition and
Results of Operations

a.       Results of operations - Comparison of three months and six months ended
         March 31, 1997 and 1996

         Sales of rights-to-receive for the three and six-month periods ended
March 31, 1997 were $26,473,000 and $49,154,000, which represented increases of
16.4% and 13.2%, respectively, over the comparable periods in the prior year,
principally resulting from the increase in cardmembers. If the $2,677,000 in
sales recorded in California, subsequent to the franchised territory's
repurchase by the Company on January 2, 1997, were not included, the
year-to-year increases would have been 4.6% and 7.1%.

         Cardmember discounts as a percentage of sales declined to 22.9% and
23.0%, respectively, in the 1997 three and six-month periods from 23.6% and
24.3% in the 1996 comparable periods reflecting the growth of new memberships in
the 20% discount category.

         Provision for rights-to-receive losses, which are included in cost of
sales, amounted to $1,382,000 and $2,121,000 for the three and six-month periods
ended March 31, 1997, compared to $385,000 and $806,000 in the prior year
periods.

         Membership and renewal fee income increased by $258,000 and $764,000 or
16.2% and 25.2%, respectively, in the three and six-month periods ended March
31, 1997, compared with the prior year, principally because of an increase in
renewal fees, which more than offset the reduction in initial fees as the
Company continued to emphasize the issuance of 20% discount, no fee memberships.
Continuing franchise fee income decreased by 12.5% to $316,000 in the
three-month period ended March 31, 1997, compared with the prior year period
because of the repurchase of the formerly franchised California territory on
January 2, 1997. In the comparable six-month periods, continuing franchise
income increased by 1.4%.

         Selling, general and administrative expenses for the three months and
six months ended March 31, 1997 increased by $1,860,000 and 3,143,000, compared
with the prior year periods and represented increases of 40.3% and 35.4%,
respectively. Expenses contributing to the increase in the current periods
included operating costs in new areas started up or acquired since the second
quarter of last year. These areas include California, Denver and Phoenix. Other
components of selling, general and administrative expense that had anticipated
increases as a result of the Company's growth, included postage and mailings,
principally associated with servicing the growing cardmember base, depreciation
and salaries.

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<PAGE>

         In the three and six-month periods ended March 31, 1997, cardmember
acquisition expenses were $1,076,000 and $2,516,000, versus $1,561,000 and
$2,132,000 in the prior year's comparable periods. The decrease in cardmember
acquisition expenses reflects the Company's strategy to minimize the use of more
expensive membership campaigns that require upfront spending. Included in
cardmember acquisition expenses was the amortization of previously capitalized
advertising costs amounting to $180,000 and $421,000 in the 1997 periods versus
$310,000 and $584,000 in the 1996 comparable periods. Costs capitalized in the
1997 periods were $68,000 and $337,000 versus $339,000 and $665,000 in 1996.

         Interest and other expense increased to $826,000 and $1,203,000 in the
1997 three and six-month periods from $150,000 and $224,000 in the comparable
1996 periods as a result of the increased level of debt in the current year.
Also included in the 1997 expense was $89,000 associated with the repurchase of
the Company's California franchise in January 1997.

         The loss before tax benefit was $945,000 and $1,275,000 in the three
and six months ended March 31, 1997, compared with income before income taxes of
$745,000 and $2,004,000 in the 1996 comparable periods.

         The net loss for the three and six months ended March 31, 1997 was
$587,000 and $791,000, or losses of 6 cents and 8 cents per share, compared with
net income of $462,000 and $1,243,000, or earnings of 5 cents and 12 cents per
share in the prior year comparable periods.

b.       Liquidity and Capital Resources

         In December 1996, the Company entered into a revolving securitization
transaction to provide for additional liquidity, as well as a platform for
future growth, at a cost of funds lower than had been historically available to
it. The transaction structure, among other things, isolated the securitized
rights-to-receive beyond the reach of the Company in the unlikely event of
bankruptcy or receivership, thus enabling characterization of the transferred
assets as a true sale at law and an "A" rating on the securities issued. The
Company believed that the transaction also allowed for derecognition of the
transferred rights-to-receive and treatment of the securitization as off-balance
sheet financing under generally accepted accounting principles.

         On December 24, 1996, the Company made an initial transfer of $33
million of its rights-to-receive to a special purpose corporation ("SPC"), an
indirect wholly owned subsidiary of the Company, as part of the revolving
securitization. The rights-to-receive, which were sold to the SPC without
recourse, were in turn transferred to a limited liability corporation (Issuer),
which issued $33 million of 7.4% fixed rate, five-year term securities in a
private placement to various third party investors. In exchange for the
rights-to-receive, which have a retail value of $66 million before cardmember
discounts, the Company received approximately $32 million, after transaction
costs, and a one percent equity interest in the Issuer. Future excess cash
flows, expected to be generated from the securitized assets as the
rights-to-receive are exchanged for meals by Company cardmembers, are to be
remitted to the Company on a monthly basis as a return on capital from the
Issuer. Excess cash flows are determined after payments of interest to

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<PAGE>

noteholders and investors, as well as trustee and servicing fees. During the
five-year revolving period, the Issuer will be responsible for ongoing purchase
of rights-to-receive from the Company to ensure that the initial pool of $33
million is continually replenished. It is anticipated that the net revenue from
securitized assets will be received in approximately the same amount and within
the same time frame that such revenue would have been received had the
securitization not taken place.

         In March 1997, the Company was advised by the SEC staff that, while the
transfers of assets may be a true sale under applicable legal principles, the
second transfer of assets from the SPC to the Issuer should not be characterized
as a sale under applicable generally accepted accounting principles, thus
precluding the derecognition of the rights-to-receive and resulting in the
presentation of the transaction as secured non-recourse financing on the
consolidated balance sheet of the Company.

         The Company's cash and cash equivalents amounted to $6,313,000 at March
31, 1997. The Company paid $7,454,000 in January 1997 to buy out one of its
franchisees as reported in Note 4 to the Consolidated Financial Statements. The
Company believes that cash on hand, plus cash generated from operations, will
meet the Company's cash requirements for the 1997 fiscal year. The Company is
also presently in negotiations for a replacement line of credit.

                           PART II - OTHER INFORMATION

Items 1, 2, 3, 4 and 5

         Items 1, 2, 3, 4 and 5 of Part II are either inapplicable or are
answered in the negative and are omitted pursuant to the instructions to Part
II.

Item 6

         Exhibits and reports on Form 8K

                  (a)      Exhibits

                           Exhibit 27 - Financial Data Schedule

                  (b)      Reports on Form 8K

                           No reports on Form 8K were filed during the Quarter
                           Ending March 31, 1996.

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<PAGE>

                               S I G N A T U R E S

         Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this Report to be signed on its behalf by
the undersigned thereunto duly authorized.

                                           TRANSMEDIA NETWORK INC.
                                                (Registrant)

May 14, 1997                               /S/STEPHEN E. LERCH                  
                                           ---------------------------------
                                           Stephen E. Lerch
                                           Executive Vice President
                                           and Chief Executive Officer

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<PAGE>


                                 EXHIBIT INDEX

EXHIBIT       DESCRIPTION
-------       -----------

27            Financial Data Schedule