Loyalty Business BrokersFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Loyalty Business Brokers franchise requires a total initial investment of $53K – $89K, including a $40K franchise fee and an ongoing 10.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $53K – $89K
- 31st pct Real Estate
- Avg gross sales
- N/A
- 25th pct Real Estate
- Royalty
- 10.0%
- 48th pct Real Estate
- Units
- 4
- 8th pct Real Estate
- SBA default
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = >15% above Real Estate 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
The system contracted 25% year-over-year. Investigate why units are closing.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $53K – $89K including a $40K franchise fee, 10.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict F (Bottom Quintile) with a risk score of 100/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Loyalty Brokers LLC
- Parent company
- Loyalty Franchising LLC
- Incorporated in
- VA
- HQ
- 780 Lynnhaven Pkwy, Suite 240, Virginia Beach, VA 23452
- Auditor
- DASH Business Solutions, LLC
- Audited financials
- Franchisor revenue
- $6K
- vs $4K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- has offered franchises s
- The Inspection Boys Franchise USA
- Tectum Franchising
- ATAX
- Loyalty Business Services
- Purely Pet
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Loyalty Business Brokers franchisees operate a business brokerage service, helping small-to-mid-market business owners buy, sell, or value companies. Day-to-day activities include client prospecting, deal sourcing, valuation analysis, and managing transaction closures. Franchisees leverage the franchisor's systems, training, and broker network to compete in local markets.
- CEO
- Michael M. Nicolais
- Headquarters
- VA
- Founded
- 2021
- FDD year
- 2025
- States available
- 3
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $3K | $5K |
| Equipment, build-out, other | $11K | $44K |
| Total initial investment | $53K | $89K |
Source: Loyalty Business Brokers 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $53K – $89K
- Better than avg vs category
- Liquid capital req'd
- $3K – $5K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Near category avg vs category
- Royalty
- 10.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 12.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $300 |
| Transfer fee | $5K |
| Renewal fee | $0 |
| Total fee load | 12.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Real Estate averages
How Loyalty Business Brokers Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 1
- Last reporting year
- Closed
- 2
- Turnover rate
- 50.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (yr3)
- -25.0%
- Net unit change last year
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 1
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 23 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.
Available to sell in · Item 12
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Avoid: Collapsing franchise system (75% unit loss in one year) with founder litigation, zero financial transparency, no territory protection, and going concern issues.
Litigation (Item 3)
27 case reference(s): 2 pending, 6 settled.
Largest disclosed settlement: $20
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DASH Business Solutions, LLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 100 / 100 rating
- 01MINORSystem collapsed 25% YoY (4 units remaining) — severe contraction indicates fundamental business model failure or franchisee dissatisfaction
- 02HIGHFounder John Hewitt involved in multiple ongoing litigation cases (tortious interference, breach of fiduciary duty, non-compete violations) creating reputational and operational risk
- 03MINORNo average revenue or net income disclosure in FDD — impossible to validate ROI claims or franchisee profitability; major red flag for transparency
- 04MINORZero territory protection despite $53,350-$88,500 investment — franchisor can saturate territory and cannibalize franchisee revenue
- 05MINOR10-year term with 10% royalty on first $825k revenue (declining to 8% after) creates extended commitment with unclear break-even timeline
- 06HIGHGoing concern status indicates parent company financial instability — risk of franchisor bankruptcy and loss of support infrastructure
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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Zip codes, natural, or political boundaries |
| Protected territory | No |
| Territory sizeℹ | 150,000 residents |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 8 |
View Item 3 litigation summary
27 case reference(s): 2 pending, 6 settled.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- QuickBooks On-line
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks On-line
Item 20 · call current owners
Franchisee Contacts
28 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Loyalty Business Brokers · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Loyalty Business Brokers franchise?
The total investment to open a Loyalty Business Brokers franchise ranges from $53K – $89K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Loyalty Business Brokers franchise owners earn?
Loyalty Business Brokers 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 Loyalty Business Brokers's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Loyalty Business Brokers (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 Loyalty Business Brokers franchise locations are there?
As of their most recent FDD filing, Loyalty Business Brokers has 4 total units in the United States, including 1 franchised units and 1 company-owned units. 1 new units were opened in the latest reporting year.
Is Loyalty Business Brokers a good franchise to buy?
FranchiseVerdict rates Loyalty Business Brokers as a F-grade franchise with a risk score of 100 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.
For franchisors
Are you the franchisor?
If you represent Loyalty Business Brokers, you can request corrections or provide updated information.
Claim this brandOther Real Estate franchises
Compare similar franchise opportunities in the Real Estate category
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.