Locals Love UsFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $67K – $92K
- 17th pct Business Serv…
- Avg gross sales
- N/A
- 29th pct Business Serv…
- Royalty
- 9.0%
- 27th pct Business Serv…
- Units
- 12
- 17th pct Business Serv…
- SBA default
- N/A
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services 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
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $67K – $92K including a $30K franchise fee, 9.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 58/100.
- 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
- Locals Operating Company, LLC
- Parent company
- FiveFour LLC
- 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
Locals Love Us appears to be a community-based service or marketing platform (likely local SEO, reputation management, or hyperlocal marketing services) where franchisees develop relationships with local small businesses. Day-to-day operations likely involve client acquisition, service delivery/management, customer success, and monthly revenue collection to support the 9% royalty obligation.
- CEO
- Dr. Nathan Unruh
- Headquarters
- SD
- Founded
- 2005
- FDD year
- 2024
- States available
- 5
FDD Item 7 · 2024 filing · 10 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
- Better than avg vs category
- Liquid capital req'd
- $10K – $24K
- Better than avg vs category
- Franchise fee
- $30K – $30K
- Better than avg vs category
- Royalty
- 9.0%
- Gross Revenues · 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 |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Business Services averages
How Locals Love Us Compares
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 (yr3)
- +0.0%
- Net unit change last year
- 3-yr CAGR
- -9.1%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
- 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 20 · 6 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.
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
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
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Locals Love Us's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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 is 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: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 58 / 100 rating
- 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
- 07HIGHNo 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Zip Codes |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 100,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Governing law | State where Business is located |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 21 hrs
- On-the-job training
- 21 hrs
- Training location
- On-site and at franchisor location
- POS system
- LoLu – Your Personal Digital Assistant
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: LoLu – Your Personal Digital Assistant
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 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 risk score of 58 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.