Loyalty Business Brokers
Formerly known as Hawk's Kids
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.
- Rated CAUTION with a risk score of 72/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Loyalty Business Brokers unit return on the cash you put in?
Unlevered ROIC · per unit
110%
Above typical band (30–60%)
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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.
Score breakdown · what drove the 72 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
28 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Loyalty Business Brokers · FDD (2025) PDF