About LeTip Franchise
LeTip is a business networking franchise that has been franchising since 2019, offering structured referral networking chapters where local business owners and professionals meet regularly to exchange qualified leads and build mutually beneficial relationships.
Each LeTip chapter allows only one member per business category, ensuring that referrals are directed without competition within the group.
The franchise fee is $40,000.
LeTip Franchise Cost & Fees
Minimum Investment
$48K
Average Investment
$56K
Maximum Investment
$65K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 17% of monthly Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Revenues | National brand fund |
| Total Investment Range | $47,610 – $64,900 | Includes build-out, inventory, working capital |
The investment range of $48K–$65K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (17% of monthly Gross Revenues) and marketing fee (1% of Gross Revenues) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 |
| Initial Training Fee | $1,000 | $2,000 |
| Food, Lodging & Travel (1 to 2 people while training) | $2,000 | $4,000 |
| Rent and Buildout of Commercial Space | $0 | $0 |
| Computer System | $0 | $2,500 |
| Presentation Equipment (Optional) | $0 | $1,000 |
| Initial Supply of Inventory | $2,000 | $2,000 |
| Home Office Supplies | $10 | $100 |
| Initial Marketing | $600 | $1,800 |
| Business Licenses & Other Prepaid Expenses | $500 | $1,000 |
| Professional Fees | $0 | $4,000 |
| Insurance (3-months’ premium) | $500 | $1,500 |
| Additional Funds (3 month period after opening) | $1,000 | $5,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Lesser of (i) 5% of sales price or (ii) 25% of our then-current initial franchise fee (Franchise Agreement); $10,000 (ADA) |
| Renewal Fee | 25% of the then-current initial franchise fee for comparable territory |
| Technology Fee | 2% of Gross Revenues |
| Audit Fee | Actual cost of audit (including travel and lodging expenses for audit team) |
| Training and Assistance Fee | Up to $1,000 per day |
| Conference Registration Fee | Up to $400 per person per day |
| President's Kits and New Member Kits | Varies depending on item purchased |
| Fines | Up to $500 per incident per 30 days |
| Late Fee | Lesser of 18% of amount past due or highest rate allowed by applicable law |
| Management Fee | Commercially reasonable rate |
| Indemnification | Will vary with circumstances |
| Attorneys’ Fees and Costs | Will vary with circumstances |
| Insurance | Actual cost of premiums, plus our costs and expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 5 days |
| Classroom Training | 21 to 22 |
| On-the-Job Training | 9 |
| Training Location | Corporate Headquarters (Mesa, Arizona) and local company-owned chapters in Mesa, Arizona (or virtually via Zoom during pandemic) |
| Additional Training | Mandatory monthly one-on-one and group training calls for Managing Owner. Franchisor may require additional system-wide refresher or remedial training. Franchisees may request additional training, which may incur a fee of up to $1,000 per day plus expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | At least 500,000 people (Franchise Agreement); No specific minimum or maximum for Development Territory (ADA) |
| Description | Each Franchise Agreement grants the right to establish and operate chapters within a defined territory with a minimum population of 500,000. The territory is protected, meaning no other person can hold chapter meetings using the Marks within it, except for pre-existing or acquired corporate chapters. The franchisor may change the territory size upon renewal if the population increases. For Area Development Agreements, a protected development territory is granted, typically coinciding with a municipality, with no specific minimum/maximum size, but it is not exclusive. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | 5 years (unlimited consecutive successor agreements) |
| Renewal Fee | 25% of the then-current initial franchise fee for comparable territory |
| Renewal Conditions | Must not be in default, give timely notice (90-150 days before expiration), sign current form of franchise agreement and ancillary documents, sign a general release, and pay the renewal fee. Terms may vary materially from original contract. |
| Transfer Fee | Lesser of (i) 5% of sales price or (ii) 25% of our then-current initial franchise fee (Franchise Agreement); $10,000 (ADA) |
| Transfer Conditions | Transferee must meet qualifications, successfully complete training, obtain required licenses/permits, and sign a new franchise agreement (or assign existing one). Transferor must be in compliance with agreement, pay transfer fee, and sign general release. Franchisor has right of first refusal. |
| Termination for Cause | Franchisor can terminate with 5 days' notice for non-curable defaults (e.g., failure to complete training, failure to open on time, insolvency, abandonment, regulatory license suspension/revocation, felony conviction, material misrepresentation, failure to pay amounts owed within 10 days, unauthorized payments from members, unauthorized transfers, intellectual property misuse, breach of brand protection covenants, failure to meet minimum performance requirements). For curable defaults, 10 days for monetary, 30 days for others. |
| Non-Compete Period | During term: No involvement in competing business. After term: 2 years within territory or any territory operated by franchisor/affiliate/other franchisee. |
| Non-Compete Details | During the term of the franchise, franchisees and owners are prohibited from owning, operating, or having an interest in any Competitive Business (except <5% in publicly traded companies), diverting business, or inducing LeTip members to transfer. After termination or expiration, these restrictions apply for 2 years within the Restricted Territory. The Restricted Territory includes the franchisee's territory and any territory operated by the franchisor, an affiliate, or another franchisee. If a court deems the 2-year period too long, it will be reduced to 1 year. Immediate family members are also subject to similar restrictions, with a presumption of disclosure if they engage in prohibited activities. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must designate a Managing Owner who is primarily responsible for management and supervision and must dedicate full-time efforts to the business unless management functions are delegated to an approved manager. The Managing Owner must successfully complete initial training and hold at least a 51% ownership interest. If a manager is hired, they must be approved by the franchisor, complete initial training, and sign a Brand Protection Agreement. The Managing Owner remains responsible if the manager cannot perform duties. All owners and their spouses must sign a Franchise Owner Agreement. |
| Required Suppliers | Franchisees must purchase all inventory items (Franchisee Kits, New Member Kits, President's Kits) exclusively from the franchisor. The franchisor's affiliate, LeTip International, is the exclusive supplier for the CRM and invoicing system (LeTip Wired). Franchisees must also purchase all branded marketing materials only from the franchisor or designated/approved suppliers. Certain operating supplies must meet franchisor standards but can be purchased from any supplier. |
| Supply Restrictions | Franchisees are required to purchase or lease certain "source restricted" goods and services for development and operation. These items must meet specifications and/or be purchased from approved or designated suppliers (which may include the franchisor or an affiliate). The franchisor may change specifications or supplier lists with 30 days' notice. Criteria for evaluating suppliers include quality, delivery, performance, design, appearance, price, dependability, reputation, and financial viability. Franchisees can propose non-approved suppliers for approval. |
| Franchisor Revenue from Suppliers | During the fiscal year ended December 31, 2021, neither the franchisor nor any of its affiliates generated any revenues from franchisee purchases from designated or approved suppliers. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may finance up to $25,000 of the initial franchise fee and/or up to 75% of the purchase price of any corporate chapter acquired. The financed portion requires a promissory note with 18 equal monthly installments of principal and interest at 7.5% per annum (or maximum legal rate). The first payment is due on the 15th day of the 3rd full month after signing the Franchise Agreement. Payments may be deducted from Gross Revenues collected by the franchisor. Prepayment is allowed without penalty. Equity owners and their spouses may be required to sign a personal guarantee. Default can lead to acceleration of the balance and termination of the franchise. |
LeTip Franchise Earnings — Item 19
LeTip does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
LeTip does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
LeTip Litigation & Risk Flags
Clean Litigation RecordLeTip has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
LeTip System Growth
Total Units
57
Franchised
1
Company-Owned
56
LeTip currently operates 1 franchised locations and 56 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 1 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$48K
Net Income
$10K
Total Assets
$52K
Audited by Kimberlin Company, PLLC for year ending December 31st.
LeTip Franchise — FAQ
The total investment to open a LeTip franchise ranges from $47,610 to $64,900, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
LeTip charges a royalty fee of 17% of monthly Gross Revenues of gross sales, plus a 1% of Gross Revenues contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the LeTip Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from LeTip to ensure you have the most up-to-date version.
LeTip does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
LeTip has been franchising since 2019. The FDD shows an investment range of $47,610-$64,900, a 17% of monthly Gross Revenues royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $47,610 to $64,900 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from LeTip and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with LeTip or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com