Bottom line
- Total investment $48K – $65K including a $40K franchise fee, 17.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated MODERATE with a risk score of 64/100.
- 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 LeTip unit return on the cash you put in?
Unlevered ROIC · per unit
63%
Above typical band (30–60%)
Overview
About
LeTip is a business networking and referral organization where franchisees host weekly membership meetings in protected territories, facilitate professional introductions, and generate revenue through membership dues and referral commissions. Franchisees serve as local chapter organizers/facilitators, managing membership growth, meeting logistics, and member engagement.
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.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
LeTip presents caution-level risk due to aggressive royalty structure, missing financial disclosure, small unit base with unknown trajectory, and thin investment margins that leave little room for error.
Score breakdown · what drove the 64 / 100 rating
- 01MEDNo average revenue or net income disclosure (Item 19 missing) — impossible to assess actual profitability or ROI
- 02MINORHigh royalty rate of 17% on gross revenues significantly reduces net margins and increases break-even threshold
- 03MINOROnly 57 units with unknown growth trajectory — insufficient scale and unclear system health/momentum
- 04MINORInitial investment of $47,610–$64,900 with $40,000 franchise fee (82% of low-end investment) leaves minimal working capital
- 05MEDNo disclosed unit growth data — cannot verify if franchise is expanding, stagnant, or contracting
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
2 numbers
One-time purchase · CSV download · Validation questions included
FDD download
LeTip · FDD (2022) PDF