About Loyalty Business Brokers Franchise
Loyalty Business Brokers offers an Area Representative franchise opportunity in the business brokerage industry.
Area Representatives focus on recruiting, supporting, and managing a network of individual Loyalty Business Brokers unit locations within a designated region, overseeing the growth and performance of a team that helps business owners buy and sell companies.
The initial franchise fee is $10,000 per undeveloped single unit territory, and the brand has been franchising since 2022 under Loyalty Franchising LLC.
Loyalty Business Brokers Franchise Cost & Fees
Minimum Investment
$117K
Average Investment
$335K
Maximum Investment
$553K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $100,000 - $500,000 | One-time payment upon signing |
| Royalty Fee | N/A for Area Representative of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenues (if Advertising Fund is established) | National brand fund |
| Total Investment Range | $116,550 – $553,000 | Includes build-out, inventory, working capital |
The investment range of $117K–$553K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (N/A for Area Representative) and marketing fee (2% of Gross Revenues (if Advertising Fund is established)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Representative Fee | $100,000 | $500,000 |
| Local Advertising | $5,000 | $10,000 |
| Utility Deposits | $0 | $1,000 |
| Real Estate/Rent | $0 | $3,000 |
| Leasehold Improvements | $0 | $10,000 |
| Computer Systems | $500 | $3,000 |
| Signage | $0 | $1,000 |
| Office Equipment and Supplies | $0 | $1,000 |
| Business Licenses and Permits | $100 | $500 |
| Insurance | $150 | $2,000 |
| Grand Opening Marketing/Advertising | $5,000 | $5,000 |
| Initial Training – Travel and Accommodations | $500 | $3,900 |
| Professional Fees (Business Broker Licenses/Real Estate Licenses) | $200 | $2,200 |
| Telecommunications Services | $100 | $400 |
| Additional Funds – 3 months | $5,000 | $10,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $0 |
| Technology Fee | $500/month up to 3 users. Additional $200 per month per additional user. |
| Audit Fee | Cost of audit plus interest on underpayment and $50 per month late payment. |
| Fees for Franchisee Prospect | Typically $150 to $200 per lead |
| Insufficient Funds Fee | $50 per transaction |
| Internal Sales Fee | $5,000 per Unit Franchise Sale. |
| Third party charges that we incur on your behalf | Actual amount of charge. |
| Assistance Fee in the event of death or incapacity | Our reasonable expenses plus 10% of Gross Revenues for the period in which we operate or assist in the operation of the Franchised Business. |
| Late Fee / Interest Fee | The lesser of 12% per annum or the maximum rate permitted by law on any late payments you owe to us |
| Credit Card Processing Fee | The then-current charge imposed by third-party credit card processor. |
| Costs of Enforcement | All costs including attorney’s fees and costs |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 days |
| Classroom Training | 26.75 |
| On-the-Job Training | 0 |
| Training Location | Virginia Beach, VA, another designated training location, or online, at franchisor's choosing. |
| Additional Training | Franchisor may elect to offer and require additional training or seminars, attendance is required. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Approximately 10–50 Single Unit Franchise Territories |
| Description | Defined by zip codes, political, or geographic boundaries. Each Single Unit Franchise Territory will contain a population of approximately 150,000 people. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $0 |
| Renewal Conditions | Must notify franchisor in writing 120 days before expiration, sign a new Area Representative Agreement (then-current form), and execute a general release of all claims. New agreement terms may not be materially different. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Must be in full compliance with the Agreement, current in all monies owed, franchisor must approve transferee (consent not unreasonably withheld), transferee must meet Section 6.8 requirements (application, screening, initial training, sign new agreement). |
| Termination for Cause | Franchisor can terminate without notice for "Cause" including failure to pass Initial Training, violation of franchise sales representations or limitations of authority, felony conviction, fraud, material misstatement, refusal to provide documentation, insolvency, unsatisfied judgment, or failure to begin transfer process within 60 days of death/incapacity. Franchisor can terminate with 30-day cure period for other agreement violations or if amounts owed are more than 30 days past due. |
| Non-Compete Period | 2 years post-term |
| Non-Compete Details | During the term, you cannot directly or indirectly recruit, search for, or solicit Franchisees or prospective Franchisees for a business brokerage in the US, or aid another person/entity (except franchisor's franchisees) in such activities. Post-term, for two years, you cannot directly or indirectly recruit, search for, or solicit Franchisees or prospective Franchisees for a business brokerage in the Territory or within twenty-five (25) miles of the boundaries of the Territory. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | If an individual, you must actively participate. If a legal entity, one of your principal owners, officers, directors, or approved employees must actively participate. A general manager can be approved but must complete initial training and abide by confidentiality/non-compete terms. All owners of an entity must personally sign the Area Representative Agreement as a Principal. |
| Required Suppliers | Franchisor is the only approved supplier for Franchise Disclosure Documents, customer relationship management software system, website services, and training services. |
| Supply Restrictions | You must use the Franchise Disclosure Documents provided by the franchisor. You must use computer hardware to franchisor specifications and software provided by the franchisor as part of the Technology Fee. All advertising and promotion must conform to franchisor standards and specifications. |
| Franchisor Revenue from Suppliers | None for 2021, may in future |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may, in its sole discretion, provide financing for up to 50% of the Initial Franchise Fee. A minimum down payment of 50% is required. The interest rate is 12% per annum, repayable over 24 months on the year anniversary. Security required is a personal guarantee from the franchisee and its owners (if an entity). There is no prepayment penalty. Default leads to accelerated payment, court costs, attorney fees, and termination of the Franchised Business. The franchisee waives the right to jury trial, homestead, and other exemptions. The franchisor does not intend to sell, assign, or factor the debt to a third party and receives no commissions/rebates for placing financing. |
Loyalty Business Brokers Franchise Earnings — Item 19
Loyalty Business Brokers 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.
Loyalty Business Brokers 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.
Loyalty Business Brokers Litigation & Risk Flags
Clean Litigation RecordLoyalty Business Brokers 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.
Loyalty Business Brokers System Growth
Total Units
0
Franchised
0
Company-Owned
0
Loyalty Business Brokers currently operates 0 franchised locations and 0 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 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
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)
0
Net Income
$-22,562
Total Assets
$12K
Audited by DASH Business Solutions, LLC for year ending December 31, 2021.
Loyalty Business Brokers Franchise — FAQ
The total investment to open a Loyalty Business Brokers franchise ranges from $116,550 to $553,000, per their Franchise Disclosure Document. This includes the initial franchise fee of $100,000 - $500,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Loyalty Business Brokers charges a royalty fee of N/A for Area Representative of gross sales, plus a 2% of Gross Revenues (if Advertising Fund is established) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Loyalty Business Brokers 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 Loyalty Business Brokers to ensure you have the most up-to-date version.
Loyalty Business Brokers 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.
Loyalty Business Brokers has been franchising since 2022. The FDD shows an investment range of $116,550-$553,000, a N/A for Area Representative royalty, and includes an 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 $100,000 - $500,000 and the total investment ranges from $116,550 to $553,000 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 Loyalty Business Brokers and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Loyalty Business Brokers or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com