Loyalty Business Brokers Franchise Cost, Revenue & Review 2026
- Investment
- $53K – $89K
- Disclosed sales
- not disclosed
- SBA charge-off
- Not SBA-matched
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]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $53K – $89K
- 36th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- 10.0%
- 63rd 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 median · 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.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict C (Average), verdict score 40/100 (higher is better).
- GROWTHNegative: net -1 franchised outlets in the latest year (1 opened, 2 closed); 1 signed but not yet open (Item 20).
- DATAThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Loyalty Brokers LLC
- Parent company
- Loyalty Franchising LLC
- FDD Item 1, page 8 of the 2025 FDD
- Ultimate parent
- Loyalty, LLC
- FDD Item 1, page 8 of the 2025 FDD
- 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).
Same owner · FDD Item 1, page 8
9 other brands on this site name Loyalty, LLC as parent or ultimate parent in their own FDD.
- ATAXB
- Cooper’s ScoopersC
- Hike DoggieD
- Jomsom Staffing ServicesC
- LedgersF
- Loyalty Business ServicesB
- Salty Dawg Pet SalonD
- The Inspection Boys® (Area Representative)D
- Zoomin Groomin®A
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 47% 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 by sales volume · 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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one Loyalty Business Brokers unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 median of 7.5%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
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 medians
How Loyalty Business Brokers Compares
Category median of published Real Estate brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
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
- 50.0%
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 1
- 0.25 per open outlet · Item 20 Table 5
- Projected new
- 66
- Franchisor's next-year forecast
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).
Where the owners are · Item 20 owner list
7 current owners across 7 states.
- CA 1
- CO 1
- NJ 1
- PA 1
- TN 1
- TX 1
- VA 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
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.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DASH Business Solutions, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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.
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 40 / 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
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 | No territory protection |
| 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
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 makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Loyalty Business Brokers?
Loyalty Business Brokers is franchised by Loyalty Brokers LLC. Its parent company is Loyalty Franchising LLC. The ultimate parent named in the FDD is Loyalty, LLC. Source: FDD Item 1, 2025 filing.
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 C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.