LMI (Leadership Management Institute) Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
LMI (Leadership Management Institute) is a B2B franchise delivering leadership, management, and productivity development programs to organizations. Franchisees run a training-and-coaching practice serving corporate clients with LMI's curriculum.
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). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $23K – $33K
- 1st pct Education
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 6th pct Education
- Units
- 110
- 65th pct Education
- SBA charge-off
- N/A
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education 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 $23K – $33K including a $15K franchise fee, 6.0% ongoing royalty.
- RETURNSTotal revenue of $778,256 for FY2024 comprises franchise revenue $87,178, management fees $60,000, and product sales (net of discounts) $631,078.
- RISKVerdict B (Above average), verdict score 48/100 (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
- 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
- Audited financials
- Franchisor revenue
- $778K
- vs $706K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Randy Slechta
- Headquarters
- TX
- FDD year
- 2025
- States available
- 38
Can you afford it, and what does the money buy?
Entry cost runs 96% below the typical education franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown6 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
- Top 40% of category vs category
- Liquid capital req'd
- $3K – $9K
- Top 40% of category vs category
- Franchise fee
- $15K – $15K
- Top 40% of category vs category
- Royalty
- 6.0%
- formula · 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 |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
LMI (Leadership Management Institute) 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 LMI (Leadership Management Institute) unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
313%
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: 2025 FDD
Financial Performance
Total revenue of $778,256 for FY2024 comprises franchise revenue $87,178, management fees $60,000, and product sales (net of discounts) $631,078.
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 6.0% — below the Education average of 10.6%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System roughly stable (-0.9% 3-year CAGR) with 110 units.
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 Education averages
How LMI (Leadership Management Institute) Compares
Is the system healthy?
Source: FDD 2025 · Item 20
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 (3-yr)
- -0.9%
- Net unit change over 3 years
- 3-yr CAGR
- -0.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 6
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 7
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- 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 12 · 38 states 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.
38
states with franchisees (per FDD Item 12)
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
- $37K
- Median loan
- $37K
- average
- Charge-off rate
- N/A
- limited sample (1 loan) — rate not shown below 10
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
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
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
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
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 48 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · 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 | none |
| 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 | 60 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Mutually agreed site (Texas venue noted) |
| Governing law | TX |
| 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
- 26 hrs
- Training location
- LMI Home Office, Waco, TX; followed by weekly teleconferences
- 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
9 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 Item 19 in the LMI (Leadership Management Institute) 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 LMI (Leadership Management Institute) FDD and qualifies whose outlets they describe.
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 110 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 B-grade franchise with a verdict score of 48 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
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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.