KLDiscoveryFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A KLDiscovery franchise requires a total initial investment of $118K – $163K, including a $50K franchise fee and an ongoing 8.0% royalty[2]. The 2024 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 2024 FDD issuance
Overview
- Investment
- $118K – $163K
- 36th pct Business Serv…
- Avg gross sales
- N/A
- 29th pct Business Serv…
- Royalty
- 8.0%
- 22nd pct Business Serv…
- Units
- 0
- 0th pct Business Serv…
- SBA default
- N/A
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services 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
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
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.
- Verdict A (Top Quintile) with a risk score of 47/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- KLDiscovery Franchising, LLC
- Parent company
- KLDiscovery Holdings, Inc.
- Incorporated in
- DE
- HQ
- 9023 Columbine Road, Eden Prairie, Minnesota 55347
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
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.
- CEO
- Chris Weiler
- Headquarters
- MN
- Founded
- 2022
- FDD year
- 2024
- States available
- 0
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $40K | $40K |
| Equipment, build-out, other | $28K | $73K |
| Total initial investment | $118K | $163K |
Source: KLDiscovery 2024 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
- $118K – $163K
- Better than avg vs category
- Liquid capital req'd
- $40K – $40K
- Near category avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- 8.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $315 |
| Transfer fee | $38K |
| Renewal fee | $5K |
| Total fee load | 8.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Business Services averages
How KLDiscovery Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Company-owned
- 0
- Corporate units in the system
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 6 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 6
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
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.
Audited financials (Item 21)
Yes · Ernst & Young LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 47 / 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
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 29 hrs
- On-the-job training
- 27 hrs
- POS system
- Salesforce, Relativity, Nebula, Globalscape
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Salesforce, Relativity, Nebula, Globalscape
Item 20 · call current owners
Franchisee Contacts
26 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
KLDiscovery · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a KLDiscovery franchise?
The total investment to open a KLDiscovery franchise ranges from $118K – $163K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do KLDiscovery franchise owners earn?
KLDiscovery 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 KLDiscovery's franchise failure rate?
SBA 7(a) loan charge-off data is not available for KLDiscovery (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.
Is KLDiscovery a good franchise to buy?
FranchiseVerdict rates KLDiscovery as a A-grade franchise with a risk score of 47 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.
For franchisors
Are you the franchisor?
If you represent KLDiscovery, you can request corrections or provide updated information.
Claim this brandOther Business Services franchises
Compare similar franchise opportunities in the Business Services category
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.