LeTipFranchise Cost, Revenue & Review 2026
Data from FDD filing
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). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $48K – $65K
- 11th pct Business Serv…
- Avg gross sales
- N/A
- 29th pct Business Serv…
- Royalty
- 17.0%
- 33rd pct Business Serv…
- Units
- 57
- 33rd 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
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
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.
- Verdict F (Bottom Quintile) with a risk score of 88/100.
- 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
- LeTip World Franchise, LLC
- 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
- ⚠ Going-concern note
- Disclosed in FDD 2022
- Status as of 2022; may have been resolved in a later filing we don't yet have.
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.
- CEO
- Kim Marie Branch-Pettid
- Headquarters
- AZ
- Founded
- 2019
- FDD year
- 2022
- States available
- 1
FDD Item 7 · 2022 filing · 14 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
- Better than avg vs category
- Liquid capital req'd
- $1K – $5K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 17.0%
- percentage_of_gross · 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 | $2 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 20.0% 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 LeTip Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 57
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 56
- Corporate units in the system
- % franchised
- 2%
- vs corporate-owned
- Net growth (yr3)
- +0.0%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 0
- 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.
Risk analysis
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.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kimberlin Company, PLLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 88 / 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
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Population |
| Protected territory | Yes |
| 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 | Arizona |
| 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
- Mesa, Arizona
- Ongoing training
- Required
- Field support
- 9 hrs/yr
- On-site visits per year
- POS system
- LeTip Wired
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: LeTip Wired
Item 20 · call current owners
Franchisee Contacts
2 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 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 0 franchised units and 56 company-owned units.
Is LeTip a good franchise to buy?
FranchiseVerdict rates LeTip as a F-grade franchise with a risk score of 88 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.