FranchiseVerdict
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FV-01519·CAUTIONStandard76

LMI (Leadership Management Institute)

Formerly known as Leadership Management International

Education - Tutoring & Test PrepFranchising since 1966Website
Investment
$23K – $33K
5th pct Tutoring & Te…
Avg revenue
55th pct Tutoring & Te…
Royalty
6.0%
3rd pct Tutoring & Te…
Units
110
73rd pct Tutoring & Te…
SBA default
0.0%
vs <3% typical

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.
  • Rated CAUTION with a risk score of 71/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
  • 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.
Incorporated in
Texas
HQ
4567 Lake Shore Drive, Waco, Texas 76710
Auditor
Pattillo, Brown & Hill, L.L.P.
Audited financials
Franchisor revenue
$731K
vs $706K prior year

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 LMI (Leadership Management Institute) unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: education
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $23K–$33K
Working capital
$
FDD reports $3K–$9K

Unlevered ROIC · per unit

313%

Above typical band (30–60%)

0%30–60% Yale band80%
ROIC above 100% usually means the revenue figure is a system-wide aggregate or top-cohort number rather than a single-unit average. Verify the "Revenue · per unit" field against the brand's FDD Item 19 detail tables before relying on this output.

Store EBITDA · annual
$105K
EBITDA margin
14.0%
Total invested
$34K
Payback
4 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

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
Founded
1979
FDD year
2025
States available
38

Item 7 · what it costs

The Vitals

Total investment
$23K – $33K
All-in to open one unit
Liquid capital
$3K – $9K
Cash you must have on hand
Franchise fee
$15K
Royalty
6.0%
percentage of gross sales · typical 6–8%
Ad fund
n/d
Total fee load
6.0%
vs 9–13% typical

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

Total units
110
Opened
6
Last reporting year
Closed
8
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
2023
110-2
Franchised units
2024
112
Franchised units
2025
111
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 7 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
1
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

71
Risk · 0-100
CAUTION71 / 100

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.

Score breakdown · what drove the 71 / 100 rating

  1. 01MINORDeclining unit count (-1.8% YoY) indicates shrinking franchise system with potential model sustainability concerns
  2. 02MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation and earnings claims assessment
  3. 03HIGHGoing Concern status is FALSE, suggesting potential financial instability or viability questions at franchisor level
  4. 04MINORUnprotected territory creates direct competition risk from other LMI franchisees in same geographic market
  5. 05MINORLow initial investment ($22.5-32.6K) relative to service-based model may indicate thin margins or undercapitalized franchisees
  6. 06MINOR6% royalty on gross sales (not net) compounds profitability pressure, especially if average revenues are low
  7. 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

Protected territory
No
Initial term
5 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
No
Franchisor can buy back on resale
Mandatory arbitration
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Texas

Item 11

Training & Operations

Classroom training
7 hrs
On-the-job training
38 hrs

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

10 numbers

Locked
(610) 793-••••
PA
(804) 371-••••
VA
(804) 426-••••
VA

One-time purchase · CSV download · Validation questions included

FDD download

LMI (Leadership Management Institute) · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above