Bottom line
- Total investment $118K – $163K including a $50K franchise fee, 8.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 65/100. SBA loan default rate of 0.0% across 6 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one KLDiscovery unit return on the cash you put in?
Unlevered ROIC · per unit
62%
Above typical band (30–60%)
Overview
About
KLDiscovery franchisees appear to operate in the legal discovery/e-discovery services sector, likely managing document review, litigation support, and digital forensics services for law firms and corporate clients. Day-to-day operations likely include client management, staff coordination for document review projects, quality assurance of discovery work, and technology platform management.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Zero active units combined with undisclosed financials and territorial vulnerability creates substantial execution risk for a franchise system of unknown viability.
Score breakdown · what drove the 65 / 100 rating
- 01MINORZero franchised units despite established brand suggests system collapse, rebranding, or non-existent franchise network
- 02MINORNo Item 19 financial performance disclosure (average revenue and net income hidden) prevents ROI validation against $118k-$162k investment
- 03MINORUnprotected territory creates direct competition risk and cannibalization within franchise system
- 04MINORHigh 8% royalty rate with no revenue disclosure makes profitability assessment impossible
- 05MINOR5-year term is shorter than industry standard (10 years typical), increasing renewal/renegotiation risk
- 06HIGHGoing concern status suggests financial instability or operational challenges at franchisor level
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
26 numbers
One-time purchase · CSV download · Validation questions included
FDD download
KLDiscovery · FDD (2024) PDF