LMI (Leadership Management Institute) Franchise Cost, Revenue & Review 2026
- Investment
- $23K – $33K
- Disclosed sales
- not disclosed
- SBA charge-off
- Under 10 loans (1)
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 4 headline figures on this page cite a page of the filing.
Overview
- Investment
- $23K – $33K
- 1st pct Education
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 7th 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 median · 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.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 48/100 (higher is better).
- GROWTHNegative: net -2 franchised outlets in the latest year (6 opened, 8 closed) (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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
Same owner · FDD Item 1
1 other brand on this site name Heritage Operating Partners, LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 86% below the typical education franchise.
Source: FDD 2025 · Items 5–7
The filing's Item 7 TOTAL row prints $22,550 to $32,600. Its own line items add to $20,000 to $27,500. The total is shown as the franchisor printed it; the lines are listed as printed. The 6 printed lines sum to $20,000 / $27,500; the TOTALS row prints $22,550 / $32,600 (= headline) but BOTH figures are struck through in the filing - a filled strike bar is drawn through the middle of each amount (page.get_drawings() shows a 0.6pt filled rect at y=416.3-416.9 spanning exactly each total's word box;
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 (to cover working capital needs for a 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%
- Set by a 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 net 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) makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one LMI (Leadership Management Institute) unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 median of 9.0%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How LMI (Leadership Management Institute) Compares
Category median of published Education brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- 7
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 7
- Signed, not yet open
- 0
- 0.00 per open outlet · Item 20 Table 5
- Projected new
- 5
- Franchisor's next-year forecast
- 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
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- 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.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Pattillo, Brown & Hill
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Total revenue of $778,256 for FY2024 comprises franchise revenue $87,178, management fees $60,000, and product sales (net of discounts) $631,078.
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
- 03MINORUnprotected territory creates direct competition risk from other LMI franchisees in same geographic market
- 04MINORLow initial investment ($22.5-32.6K) relative to service-based model may indicate thin margins or undercapitalized franchisees
- 05MINOR6% royalty on gross sales (not net) compounds profitability pressure, especially if average revenues are low
- 06MINOR5-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 | No territory protection |
| 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
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) makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns LMI (Leadership Management Institute)?
LMI (Leadership Management Institute) is franchised by Leadership Management, Inc.. The ultimate parent named in the FDD is Heritage Operating Partners, LLC. Source: FDD Item 1, 2025 filing.
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). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.