Loyalty Business Brokers Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Loyalty Business Brokers is a business brokerage franchise that helps owners buy, sell, and value small and midsize businesses. Franchisees work as brokers, listing businesses and closing deals for commissions.
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). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $53K – $89K
- 35th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- 10.0%
- 53rd pct Real Estate
- Units
- 4
- 8th pct Real Estate
- SBA charge-off
- N/A
Quick verdict · Real Estate · color = vs category peers
Green = favorable by >10% vs Real Estate 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 $53K – $89K including a $40K franchise fee, 10.0% ongoing royalty.
- RETURNSAudited financial statements for FY ending December 31, 2024 (with comparatives for 2023 and 2022) by DASH Business Solutions, LLC. Item 21 also references an unaudited Balance Sheet and P&L as of March 31, 2025. FY2024 Total Revenues of $53,848 included Franchise Fees $3,037, Technology Fee Income $11,800, Area Rep Sales Revenue $7,000, Royalty Revenue $26,063, Other Income $1,000, and Interest Income $4,948.
- RISKVerdict D (Below average), verdict score 35/100 (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
- Loyalty Brokers LLC
- Parent company
- Loyalty Franchising LLC
- Ultimate parent
- Loyalty, LLC
- CEO title
- Chief Executive Officer
- Michael M. Nicolais
- Incorporated in
- VA
- HQ
- 780 Lynnhaven Parkway, Suite 240, Virginia Beach, VA 23452
- Auditor
- DASH Business Solutions, LLC
- Audited financials
- Franchisor revenue
- $54K
- vs $4K prior year
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
- CEO
- Michael M. Nicolais
- Headquarters
- VA
- Founded
- 2021
- FDD year
- 2025
- States available
- 3
Can you afford it, and what does the money buy?
Entry cost runs 67% below the typical real estate franchise.
Source: FDD 2025 · Items 5–7
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
- Top 40% of category vs category
- Liquid capital req'd
- $3K – $5K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Middle of category vs category
- Royalty
- 10.0%
- tiered · 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 |
| Training fee | $4K |
| Transfer fee | $5K |
| Renewal fee | $0 |
| Total fee load | 12.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Loyalty Business Brokers 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 Loyalty Business Brokers unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
110%
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: 2025 FDD
Financial Performance
Audited financial statements for FY ending December 31, 2024 (with comparatives for 2023 and 2022) by DASH Business Solutions, LLC. Item 21 also references an unaudited Balance Sheet and P&L as of March 31, 2025. FY2024 Total Revenues of $53,848 included Franchise Fees $3,037, Technology Fee Income $11,800, Area Rep Sales Revenue $7,000, Royalty Revenue $26,063, Other Income $1,000, and Interest Income $4,948.
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 12.0% — above the Real Estate average of 9.1%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Operator retention
Net unit growth of +75.0% over 3 years (1 opened, 2 closed).
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 Real Estate averages
How Loyalty Business Brokers Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 4
- Opened
- 1
- Last reporting year
- Closed
- 2
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 66.7%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 75%
- vs corporate-owned
- Net growth (3-yr)
- +75.0%
- Net unit change over 3 years
- 3-yr CAGR
- +0.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 5
- Closed (3yr)
- 2
- 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 · 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).
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).
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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.
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
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)
Multiple concluded cases involving John T. Hewitt (chairman of parent Loyalty LLC): JTH Tax/Liberty Tax trademark/trade secret case (settled $545,000); K&A Publicidad breach of contract (settled $50,000 combined); Szawronski employment claim (settled combined); In Re Liberty Tax stockholder derivative litigation Delaware; RSL Senior Partners shareholder derivative (dismissed); Bablu Shahabuddin breach/fraud (settled $775,000); California DFPI consent order requiring disclosure of DOJ final order against Liberty Tax.
Largest disclosed settlement: $775,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DASH Business Solutions, LLC
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: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 35 / 100 verdict
- 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
What are you signing up for?
Ongoing fees run about 12.0% 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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | none |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 150,000 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Virginia Beach, Virginia |
| Jury trial waiver | Yes |
| Governing law | VA |
| Litigation count | 7 |
View Item 3 litigation summary
Multiple concluded cases involving John T. Hewitt (chairman of parent Loyalty LLC): JTH Tax/Liberty Tax trademark/trade secret case (settled $545,000); K&A Publicidad breach of contract (settled $50,000 combined); Szawronski employment claim (settled combined); In Re Liberty Tax stockholder derivative litigation Delaware; RSL Senior Partners shareholder derivative (dismissed); Bablu Shahabuddin breach/fraud (settled $775,000); California DFPI consent order requiring disclosure of DOJ final order against Liberty Tax.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 0 hrs
- Training location
- Online (Virginia Beach, Virginia at franchisor's choosing)
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- 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
7 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 Item 19 in the Loyalty Business Brokers 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 Loyalty Business Brokers FDD and qualifies whose outlets they describe.
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 3 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 D-grade franchise with a verdict score of 35 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
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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.