LMI (Leadership Management Institute)Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A LMI (Leadership Management Institute) franchise requires a total initial investment of $23K – $33K, including a $15K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $23K – $33K
- 1st pct Education
- Avg gross sales
- N/A
- 47th pct Education
- Royalty
- 6.0%
- 6th pct Education
- Units
- 110
- 57th pct Education
- SBA default
- N/A
Quick verdict · Education · color = vs category peers
Green = >15% above Education 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
Franchising since 1966. Systems this mature have refined operations and brand recognition.
Franchised units fell from 111 to 110 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $23K – $33K including a $15K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average) with a risk score of 65/100.
- No 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
- Legal entity
- Leadership Management, Inc.
- Ultimate parent
- Heritage Operating Partners, LLC
- Predecessor
- Apex Fun Run
- Prior franchisor entity
- CEO title
- Chairman of the Board, CEO and President
- Randy Slechta
- Incorporated in
- TX
- HQ
- 4567 Lake Shore Drive, Waco, Texas 76710
- Auditor
- Pattillo, Brown & Hill, L.L.P.
- Audited financials
- Franchisor revenue
- $731K
- vs $706K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
LMI franchisees deliver leadership and management training programs to corporate clients, conducting workshops, seminars, and coaching engagements. Day-to-day activities include client prospecting, delivering instructor-led training sessions, managing course materials, and tracking participant progress. Franchisees operate as independent consultants/trainers selling LMI's proprietary curriculum and methodologies to mid-market businesses.
- CEO
- Randy Slechta
- Headquarters
- TX
- FDD year
- 2025
- States available
- 38
FDD Item 7 · 2025 filing · 6 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchisee Fee | $15K | $15K | |
| Marketing And Business System Manuals, etc. | — | — | |
| Travel Expenses | $1K | $2K | |
| Real Estate and Improvements | — | — | |
| Miscellaneous Opening Costs | $1K | $2K | |
| Additional Funds (working capital for start up period of 1 to 3 months) | $3K | $9K | |
| Total initial investment | $20K | $28K |
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
- $23K – $33K
- Better than avg vs category
- Liquid capital req'd
- $3K – $9K
- Better than avg vs category
- Franchise fee
- $15K – $15K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- -n/d
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Transfer fee | $5K |
| Renewal fee | $2K |
| Total fee load | 6.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Education averages
How LMI (Leadership Management Institute) Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 110
- Opened
- 6
- Last reporting year
- Closed
- 8
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 4
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -1.8%
- Net unit change last year
- 3-yr CAGR
- -0.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 4
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 2,018
- Franchisor bought back
- Transfer rate
- 1.8%
- Owners selling to other franchisees
- Termination rate
- 3.6%
- Franchisor-initiated terminations
- Ceased ops
- 7.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- California
- Illinois
- Indiana
- New York
- South Dakota
- Virginia
- Washington
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- 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
LMI presents HIGH RISK due to shrinking unit base, undisclosed earnings data, questionable franchisor financial health, lack of territory protection, and inability to assess realistic ROI before investment.
Litigation (Item 3)
No litigation required to be disclosed
Largest disclosed settlement: $1,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Pattillo, Brown & Hill, L.L.P.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 65 / 100 rating
- 01MINORDeclining unit count (-1.8% YoY) indicates shrinking franchise system with potential model sustainability concerns
- 02MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation and earnings claims assessment
- 03HIGHGoing Concern status is FALSE, suggesting potential financial instability or viability questions at franchisor level
- 04MINORUnprotected territory creates direct competition risk from other LMI franchisees in same geographic market
- 05MINORLow initial investment ($22.5-32.6K) relative to service-based model may indicate thin margins or undercapitalized franchisees
- 06MINOR6% royalty on gross sales (not net) compounds profitability pressure, especially if average revenues are low
- 07MINOR5-year term is relatively short, reducing franchisee ability to recoup investment and build long-term equity
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 |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 100 mi |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Texas |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 7 hrs
- On-the-job training
- 38 hrs
- Training location
- LMI Home Office in Waco, TX
- Ongoing training
- Optional
- Field support
- 208 hrs/yr
- On-site visits per year
- Time to open
- 1 mo
- From signing to launch
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
10 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
LMI (Leadership Management Institute) · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a LMI (Leadership Management Institute) franchise?
The total investment to open a LMI (Leadership Management Institute) franchise ranges from $23K – $33K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do LMI (Leadership Management Institute) franchise owners earn?
LMI (Leadership Management Institute) 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 LMI (Leadership Management Institute)'s franchise failure rate?
SBA 7(a) loan charge-off data is not available for LMI (Leadership Management Institute) (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 LMI (Leadership Management Institute) franchise locations are there?
As of their most recent FDD filing, LMI (Leadership Management Institute) has 110 total units in the United States, including 111 franchised units and 0 company-owned units. 6 new units were opened in the latest reporting year.
Is LMI (Leadership Management Institute) a good franchise to buy?
FranchiseVerdict rates LMI (Leadership Management Institute) as a C-grade franchise with a risk score of 65 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.