KeyGleeFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A KeyGlee franchise requires a total initial investment of $125K – $274K, including a $100K franchise fee. The 2022 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $125K – $274K
- 63rd pct Real Estate
- Avg gross sales
- N/A
- 25th pct Real Estate
- Royalty
- N/A
- Units
- 97
- 42nd pct Real Estate
- SBA default
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = >15% above Real Estate avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system grew 278% year-over-year. Fast growth means demand, but can strain support.
Bottom line
- Total investment $125K – $274K including a $100K franchise fee.
- Item 19 disclosed $24.3M from 1 company-owned outlet. This reflects franchisor operations, not franchisee performance.
- Verdict A (Top Quintile) with a risk score of 38/100.
- Item 19 reports "Company-owned outlet" instead of annual gross sales. Ask franchisees directly for full unit-level revenue.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- KeyGlee Franchise, Inc.
- Parent company
- KeyGlee, LLC
- Incorporated in
- AZ
- HQ
- 1050 W. Washington Street, Suite 133, Tempe, Arizona 85281
- Auditor
- Semple, Marchal & Cooper, LLP
- Audited financials
- Franchisor revenue
- $2.3M
- vs $8.6M prior year
Overview
About
KeyGlee franchisees appear to operate music education or performance-related services (based on brand name) serving students or consumers seeking music instruction, lessons, or entertainment. Day-to-day operations likely involve scheduling client sessions, delivering personalized instruction or services, managing student/client relationships, and handling administrative/billing functions.
- CEO
- Josiah Grimes
- Headquarters
- AZ
- Founded
- 2019
- FDD year
- 2022
- States available
- 25
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $100K | $100K |
| Working capital (3–6 mo) | $20K | $120K |
| Equipment, build-out, other | $5K | $54K |
| Total initial investment | $125K | $274K |
Source: KeyGlee 2022 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $125K – $274K
- Near category avg vs category
- Liquid capital req'd
- $20K – $120K
- Near category avg vs category
- Franchise fee
- $100K – $100K
- Below avg, review vs category
- Royalty
- Greater of 15% of monthly Gross Profits or $5,250 per month
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 16.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Transfer fee | $25K |
| Renewal fee | $25K |
| Total fee load | 16.0% of rev |
Financial Performance
Item 19 disclosed $24.3M from 1 company-owned outlet. This reflects franchisor operations, not franchisee performance.
vs Real Estate averages
How KeyGlee Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 97
- Opened
- 66
- Last reporting year
- Closed
- 2
- Turnover rate
- 2.1%
- Company-owned
- 10
- Corporate units in the system
- % franchised
- 90%
- vs corporate-owned
- Net growth (yr3)
- Outlier (see FDD)
- Likely small-sample artifact
3-year detail · Item 20
- Transfers (3yr)
- 1
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 26 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
KeyGlee presents elevated risk due to explosive unit growth, unprotected territory, high fixed royalty obligations, unclear franchisor viability, and lack of financial performance substantiation.
Audited financials (Item 21)
Yes · Semple, Marchal & Cooper, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 38 / 100 rating
- 01MINORExtreme unit growth of 278.3% YoY suggests either aggressive recruitment or high churn; unsustainable expansion raises sustainability questions
- 02MINORNo territory protection creates direct competition risk and cannibalization between franchisees in same market
- 03MINORHigh royalty floor of $5,250/month ($63,000 annually) represents 5.5% of average franchise net income, creating significant fixed cost burden
- 04HIGHGoing Concern status FALSE is concerning; unclear if this indicates franchisor financial distress or data error requiring clarification
- 05MEDFranchise fee of $100,000 combined with $124,800-$274,050 total investment is substantial relative to disclosed average net income of $1.13M across all 97 units
- 06MINORItem 19 Financial Performance Representations absent; cannot validate if average revenue/income figures are achievable or representative of typical unit
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Counties |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 20 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 43 hrs
- On-the-job training
- 48 hrs
- POS system
- software tracking system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: software tracking system
Item 20 · call current owners
Franchisee Contacts
71 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
KeyGlee · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a KeyGlee franchise?
The total investment to open a KeyGlee franchise ranges from $125K – $274K, with an initial franchise fee of $100K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do KeyGlee franchise owners earn?
KeyGlee does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is KeyGlee's franchise failure rate?
SBA 7(a) loan charge-off data is not available for KeyGlee (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many KeyGlee franchise locations are there?
As of their most recent FDD filing, KeyGlee has 97 total units in the United States, including 0 franchised units and 10 company-owned units. 66 new units were opened in the latest reporting year.
Is KeyGlee a good franchise to buy?
FranchiseVerdict rates KeyGlee as a A-grade franchise with a risk score of 38 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.