Locals Love Us Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Locals Love Us is a local marketing franchise that runs community best-of programs and promotes small businesses to area consumers. Franchisees run local operations, building business accounts and managing the program.
FranchiseVerdict summary · 2026
A Locals Love Us franchise requires a total initial investment of $67K – $92K, including a $30K franchise fee and an ongoing 9.0% royalty[2]. The 2024 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 2024 FDD issuance
Overview
- Investment
- $67K – $92K
- 21st pct Business Serv…
- Avg gross sales
- N/A
- Royalty
- 9.0%
- 31st pct Business Serv…
- Units
- 12
- 19th pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services 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 $67K – $92K including a $30K franchise fee, 9.0% ongoing royalty.
- RETURNSShort-year statements (Aug 17 - Dec 31, 2023); company began franchising in 2024, so only one fiscal year of audited financials available. Revenue comprises royalties $100,831, service fees $34,046, graphic design fees $29,948, system administration fees $422, technology fees $400 (total $165,647). Net income includes $656 other income less $187 interest expense.
- 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
- Locals Operating Company, LLC
- Parent company
- FiveFour LLC
- Predecessor
- Locals Love Us, LLC (LLU); Locals Love Franchising, LLC (LLF)
- Prior franchisor entity
- CEO title
- President
- Dr. Nathan Unruh
- Incorporated in
- SD
- HQ
- 412 South First Avenue, Sioux Falls, SD 57104
- Auditor
- Paceline Accounting Group, LLP
- Audited financials
- Franchisor revenue
- $166K
- Most recent fiscal year
Overview
About
- CEO
- Dr. Nathan Unruh
- Headquarters
- SD
- Founded
- 2005
- FDD year
- 2024
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 72% below the typical business services franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown10 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $30K | $30K | |
| Website, email, and LoLu Setup Feenot refundable | $5K | $5K | |
| Office Equipment & Suppliesnot refundable | $0 | $3K | |
| Vehicle and Insurancenot refundable | $2K | $5K | |
| Business Licenses and Permitsnot refundable | $200 | $500 | |
| Professional Feesnot refundable | $800 | $2K | |
| Business Insurancenot refundable | $250 | $333 | |
| Training Expensesnot refundable | $0 | $4K | |
| Grand Opening Advertisingnot refundable | $20K | $20K | |
| Additional Funds / Working Capital - 3 monthsnot refundable | $10K | $24K | |
| Total initial investment | $67K | $92K |
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
- $67K – $92K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $24K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 9.0%
- percentage · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 9.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $22K |
| Renewal fee | $2K |
| Total fee load | 10.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Locals Love Us 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 Locals Love Us unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
101%
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: 2024 FDD
Financial Performance
Short-year statements (Aug 17 - Dec 31, 2023); company began franchising in 2024, so only one fiscal year of audited financials available. Revenue comprises royalties $100,831, service fees $34,046, graphic design fees $29,948, system administration fees $422, technology fees $400 (total $165,647). Net income includes $656 other income less $187 interest expense.
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 10.0% — below the Business Services average of 11.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
System contracting at -9.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
50% of franchisees own multiple units, a moderate multi-unit rate.
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 Business Services averages
How Locals Love Us Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 12
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 83%
- vs corporate-owned
- Multi-unit owners
- 50.0%
- Net growth (3-yr)
- -9.1%
- Net unit change over 3 years
- 3-yr CAGR
- -9.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 4
- Franchisor's next-year forecast
- Transfer rate
- 8.3%
- Owners selling to other franchisees
- Continuity rate
- 100.0%
- Units that stayed open
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 6 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.
6
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
- $123K
- Median loan
- $123K
- 50th percentile
- 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
- 1
- 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
Micro-franchise with non-disclosed financials, going concern status, and minimal unit base presents meaningful profitability and sustainability risk.
Litigation (Item 3)
No litigation required to be disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Paceline Accounting Group, LLP
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
- 01HIGHGoing Concern status is FALSE — indicates potential financial instability or undisclosed operational challenges
- 02MEDNo Item 19 (Average Unit Volume) disclosed — impossible to assess ROI or validate the $66,750–$91,833 investment thesis
- 03MINOROnly 12 units systemwide with unknown growth trajectory — micro-franchise with no visibility into expansion momentum
- 04MED9% royalty on undisclosed revenues — cannot determine cash flow impact or breakeven timeline
- 05MINOR$29,500 franchise fee with $66,750–$91,833 total investment suggests significant ongoing costs (equipment, working capital, or initial inventory) that are not itemized
- 06MINOR5-year term is relatively short — increases renewal risk and limits long-term relationship visibility
- 07MEDNo litigation disclosed but Going Concern issue suggests reputational or operational risk not yet reflected in lawsuits
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 100,000 |
| 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 | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Sioux Falls, South Dakota |
| Governing law | SD |
| 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
- 21 hrs
- Training location
- Sioux Falls, SD or a location designated by franchisor
- Ongoing training
- Required
- Time to open
- 7 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- LoLu - Your Personal Digital Assistant (proprietary CRM/CMS)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: LoLu - Your Personal Digital Assistant (proprietary CRM/CMS)
Item 20 · call current owners
Franchisee Contacts
10 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Locals Love Us · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Locals Love Us franchise?
The total investment to open a Locals Love Us franchise ranges from $67K – $92K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Locals Love Us franchise owners earn?
Locals Love Us 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 Locals Love Us 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 Locals Love Us FDD and qualifies whose outlets they describe.
What is Locals Love Us's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Locals Love Us (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 Locals Love Us franchise locations are there?
As of their most recent FDD filing, Locals Love Us has 12 total units in the United States, including 10 franchised units and 2 company-owned units.
Is Locals Love Us a good franchise to buy?
FranchiseVerdict rates Locals Love Us 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
Are you the franchisor?
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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.