LeTip Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
LeTip is a business networking franchise running structured weekly referral groups for local professionals. Franchisees organize and manage chapters, recruiting members and facilitating meetings for membership revenue.
FranchiseVerdict summary · 2026
A LeTip franchise requires a total initial investment of $48K – $65K, including a $40K franchise fee and an ongoing 17.0% royalty[2]. The 2022 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2022 FDD issuance
Overview
- Investment
- $48K – $65K
- 13th pct Business Serv…
- Avg gross sales
- N/A
- Royalty
- 17.0%
- 40th pct Business Serv…
- Units
- 57
- 39th pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $48K – $65K including a $40K franchise fee, 17.0% ongoing royalty.
- RETURNSFigures from the audited financial statements of LeTip World Franchise, LLC (the franchisor entity; single set of statements, no parent/guarantor) for the year ended December 31, 2021. Stated in whole US dollars (not in thousands). Only one fiscal year is presented, so prior-year (yr2) revenue is not available. Total revenue of $47,953 = franchise revenue $6,000 + royalty revenue $41,953; no separate 'other revenue' line. Balance sheet reconciles: total assets $51,884 = total liabilities $29,101 + total members' equity $22,783. Members' equity comprises members' capital $77,778 + additional paid-in capital $26,478 less accumulated deficit ($81,473).
- RISKVerdict A (Strongest tier), verdict score 60/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- LeTip World Franchise, LLC
- CEO title
- Chief Executive Officer, President and Partner
- Kim Marie Branch-Pettid
- Incorporated in
- AZ
- HQ
- 4838 E. Baseline Road, Suite 123, Mesa, Arizona 85206
- Auditor
- Kimberlin Company, PLLC
- Audited financials
- Franchisor revenue
- $48K
- vs $33K prior year
Overview
About
- CEO
- Kim Marie Branch-Pettid
- Headquarters
- AZ
- Founded
- 2019
- FDD year
- 2022
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 80% below the typical business services franchise.
Source: FDD 2022 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Initial Training Feenot refundable | $1K | $2K | |
| Food, Lodging & Travel (1 to 2 people while training) | $2K | $4K | |
| Rent and Buildout of Commercial Space | — | — | |
| Computer System | $0 | $3K | |
| Presentation Equipment (Optional) | $0 | $1K | |
| Initial Supply of Inventorynot refundable | $2K | $2K | |
| Home Office Supplies | $10 | $100 | |
| Initial Marketing | $600 | $2K | |
| Business Licenses & Other Prepaid Expenses | $500 | $1K | |
| Professional Fees | $0 | $4K | |
| Insurance (3-months' premium) | $500 | $2K | |
| Additional Funds (3 month period after opening) | $1K | $5K | |
| Development Fee (Area Development Offering)not refundable | $36K | $72K | |
| Total initial investment | $84K | $137K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $48K – $65K
- Top 40% of category vs category
- Liquid capital req'd
- $1K – $5K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 17.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 20.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 17.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $0 |
| Training fee | $1K |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Inventory (initial) | $2K – $2K |
| Total fee load | 20.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
LeTip did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one LeTip unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
63%
Above the 30–60% band. Verify revenue is per-unit average
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2022 FDD
Financial Performance
Figures from the audited financial statements of LeTip World Franchise, LLC (the franchisor entity; single set of statements, no parent/guarantor) for the year ended December 31, 2021. Stated in whole US dollars (not in thousands). Only one fiscal year is presented, so prior-year (yr2) revenue is not available. Total revenue of $47,953 = franchise revenue $6,000 + royalty revenue $41,953; no separate 'other revenue' line. Balance sheet reconciles: total assets $51,884 = total liabilities $29,101 + total members' equity $22,783. Members' equity comprises members' capital $77,778 + additional paid-in capital $26,478 less accumulated deficit ($81,473).
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 20.0% — above the Business Services average of 11.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
Net unit growth roughly flat at 0.0%.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services averages
How LeTip Compares
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 57
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 56
- Corporate units in the system
- % franchised
- 2%
- vs corporate-owned
- Net growth (3-yr)
- +0.0%
- Net unit change over 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 100.0%
- Units that stayed open
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)
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kimberlin Company, PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 60 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 20.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 500,000 |
| 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 |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Mandatory arbitration | No |
| Arbitration location | Maricopa County, Arizona (mediation/litigation for FA; mediation then arbitration for ADA) |
| Jury trial waiver | Yes |
| Governing law | AZ |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 21 hrs
- On-the-job training
- 9 hrs
- Training location
- Corporate Headquarters, Mesa, Arizona; local company-owned chapters in Mesa, Arizona
- Ongoing training
- Required
- Field support
- 9 hrs/yr
- On-site visits per year
- Franchisor financing
- Offered
- Item 10
- POS system
- LeTip Wired
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: LeTip Wired
Item 20 · call current owners
Franchisee Contacts
3 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
LeTip · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a LeTip franchise?
The total investment to open a LeTip franchise ranges from $48K – $65K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do LeTip franchise owners earn?
LeTip 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 Item 19 in the LeTip FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the LeTip FDD and qualifies whose outlets they describe.
What is LeTip's franchise failure rate?
SBA 7(a) loan charge-off data is not available for LeTip (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 LeTip franchise locations are there?
As of their most recent FDD filing, LeTip has 57 total units in the United States, including 1 franchised units and 56 company-owned units.
Is LeTip a good franchise to buy?
FranchiseVerdict rates LeTip as a A-grade franchise with a verdict score of 60 out of 100 (higher is better), 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 LeTip, you can request corrections or provide updated information.
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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.