Loyalty Business Services Franchise Cost, Revenue & Review 2026
- Investment
- $48K – $90K
- Disclosed sales
- $294K
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Loyalty Business Services, under the Ledgers brand, is a financial franchise offering bookkeeping, payroll, and tax services to small businesses. Franchisees run home-based or office practices, managing client accounts and service delivery.
FranchiseVerdict summary · 2026
A Loyalty Business Services franchise requires a total initial investment of $48K – $90K, including a $35K franchise fee and an ongoing 10.0% royalty[2]. Per the 2026 FDD, average revenue per office was $294K. This franchisor reports Item 19 per office rather than per outlet, so the figure is not comparable with per-outlet averages[2]. FranchiseVerdict grade: B (Above 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: low - issued within the last 12 months
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 scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $48K – $90K
- 23rd pct Financial Ser…
- Avg gross sales
- $294K
- Per office, not per outlet2 offices
- Royalty
- 10.0%
- 18th pct Financial Ser…
- Units
- 16
- 25th pct Financial Ser…
- SBA charge-off
- N/A
Quick verdict · Financial Services · color = vs category peers
Green = favorable by >10% vs Financial Services 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 $48K – $90K including a $35K franchise fee, 10.0% ongoing royalty.
- RETURNSAverage revenue per office of $294K/year (median $294K). Averaged per office, not per outlet - not comparable with per-outlet figures.
- RISKVerdict B (Above average), verdict score 61/100 (higher is better).
- GROWTHPositive: net +14 franchised outlets in the latest year (14 opened, 0 closed) (Item 20).
- FLAGRevenue data based on only 2 offices. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Loyalty Business Services LLC d/b/a Ledgers
- Parent company
- Loyalty, LLC
- FDD Item 1, page 8 of the 2026 FDD
- Predecessor
- Fide Holding LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Timothy Tyler Wynn
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- Virginia
- HQ
- 780 Lynnhaven Parkway, Suite 240, Virginia Beach, Virginia 23452
- Auditor
- Bernard Robinson & Company, L.L.P.
- Audited financials
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1, page 8
8 other brands on this site name Loyalty, LLC as parent or ultimate parent in their own FDD.
- ATAXB
- Cooper’s ScoopersC
- Hike DoggieD
- LedgersF
- Loyalty Business BrokersC
- 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 2026 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
- Timothy Tyler Wynn
- Headquarters
- Virginia
- Founded
- 2019
- FDD year
- 2026
- States available
- 12
Can you afford it, and what does the money buy?
Entry cost runs 27% below the typical financial services franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown14 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $35K | $35K | |
| Construction & Leasehold Improvements | $0 | $10K | |
| Furniture, Fixtures and Equipment | $0 | $7K | |
| Interior & Exterior Signage | $0 | $3K | |
| Rent and Security Deposit | $0 | $6K | |
| Software and Software Support Services | $100 | $500 | |
| Computer Systems & Connectivity | $3K | $4K | |
| Training Travel and Living Expenses | $1K | $2K | |
| Opening Inventory & Supplies | $500 | $2K | |
| Permits and Licenses | $700 | $700 | |
| Utilities | $500 | $1K | |
| Insurance | $400 | $500 | |
| Professional Fees | $3K | $4K | |
| Additional Funds – 3 months | $5K | $15K | |
| Total initial investment | $48K | $90K |
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
- $48K – $90K
- Top 40% of category vs category
- Liquid capital req'd
- $5K – $15K
- Top 40% of category vs category
- Franchise fee
- $35K – $35K
- Top 40% of category vs category
- Royalty
- 10.0%
- typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 17.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Transfer fee | $5K |
| Inventory (initial) | $500 – $2K |
| Total fee load | 17.0% of rev |
At 17.0% total fee load, roughly $50K per year per office goes to the franchisor before you pay a single operating expense.
What do units actually make?
Average unit sales run 12% above the financial services norm.
Averaged per office, not per outlet - not comparable with per-outlet figures
Based on only 2 offices
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Loyalty Business Services until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
Total invested capital · disclosed
$79K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Loyalty Business Services 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 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.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for 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.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2026 FDD
Financial Performance
Averaged per office, not per outlet - not comparable with per-outlet figures
Based on only 2 offices
- Avg gross sales
- $294K
- Per office, per year — not per outlet
- Median gross sales
- $294K
- Per office, not per outlet
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Sample size
- 2 offices
- vs category median 94 · small
- Range (low → high)
- $224K→$364KCited, not corroborated — printed on page 47 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 45 Financial Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
The average office generates $294K/year in gross sales.
Fee burden
Total ongoing fee load of 17.0% (near the Financial Services median).
Disclosure
Transparency score 0/10 — minimal disclosure beyond the required average. Hard to judge the distribution of outcomes across units. Sample size of 2 offices — treat as directional only.
Operator retention
System expanding at 300.0% CAGR over 3 years across 16 units — operators are staying and new ones are joining.
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 Financial Services medians
How Loyalty Business Services Compares
Per office, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Financial Services 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 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 16
- Opened
- 14
- 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
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- Outlier (see FDD)
- Likely small-sample artifact
- 3-yr CAGR
- Outlier (see FDD)
- Likely small-sample artifact
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 12 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
12
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
2 current owners across 2 states.
- FL 1
- VA 1
Counts only, from the list the franchisor prints in Item 20; 2 entries carry no state. 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
Micro-franchise with only 2 units, undisclosed financials, high royalty burden, and serious litigation history tied to management's troubled past at Liberty Tax creates extreme execution and legal risk.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Two pending actions (a minority-investor suit against affiliate ATAX/Hewitt/Loyalty alleging fraud and breach of fiduciary duty; an AAA arbitration by a joint-venture partner alleging breach of contract, seeking ~$1.95M with a $225,000 counterclaim). Six concluded actions primarily involving CEO John T. Hewitt and prior company Liberty Tax/JTH Tax (trade dress/trade secrets suit settled for $545,000; two related employment/vendor suits settled for $50,000 combined; shareholder derivative suits settled without admission of liability; a Purchase-and-Sale dispute settled for $775,000). A DOJ action against an unrelated Liberty Tax entity (Hewitt not a named party) resulted in Hewitt being barred from re-employment/board nomination at Liberty Tax. A California DFPI consent order requires Hewitt to disclose the DOJ Final Order in Item 3 of any FDD where he holds a management role.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Bernard Robinson & Company, L.L.P.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Initial franchise and royalty revenue was $0 for years ended December 31, 2020 and 2019; deferred revenue of $820,000 recorded on balance sheet.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 61 / 100 verdict
- 01MEDOnly 2 units in entire system indicates extremely limited scale and unproven model
- 02HIGHExtensive litigation history including pending trade dress/tortious interference claims and 9 concluded actions suggests operational and legal instability
- 03MINORChairman's previous tenure at Liberty Tax involved securities class actions and derivative suits—significant reputational and governance risk
- 04MINORUnknown unit growth rate suggests stagnation or inability to attract franchisees despite being established
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 17.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · 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 | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 65,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Virginia (closest court of general jurisdiction to franchisor's corporate office; mediation first, then arbitration) |
| Jury trial waiver | Yes |
| Governing law | Virginia |
| Litigation count | 10 |
View Item 3 litigation summary
Two pending actions (a minority-investor suit against affiliate ATAX/Hewitt/Loyalty alleging fraud and breach of fiduciary duty; an AAA arbitration by a joint-venture partner alleging breach of contract, seeking ~$1.95M with a $225,000 counterclaim). Six concluded actions primarily involving CEO John T. Hewitt and prior company Liberty Tax/JTH Tax (trade dress/trade secrets suit settled for $545,000; two related employment/vendor suits settled for $50,000 combined; shareholder derivative suits settled without admission of liability; a Purchase-and-Sale dispute settled for $775,000). A DOJ action against an unrelated Liberty Tax entity (Hewitt not a named party) resulted in Hewitt being barred from re-employment/board nomination at Liberty Tax. A California DFPI consent order requires Hewitt to disclose the DOJ Final Order in Item 3 of any FDD where he holds a management role.
Items 10, 11
Training & Operations
- Classroom training
- 18 hrs
- On-the-job training
- 0 hrs
- Training location
- Virginia Beach, Virginia (or other designated training location, or online)
- Ongoing training
- Required
- Field support
- 0 hrs/yr
- On-site visits per year
- Time to open
- 3 mo
- From signing to launch
- Site selection
- franchisee (no site selection assistance provided; may operate from home/virtual office or obtain commercial space)
- Franchisor financing
- Offered
- Item 10
- POS system
- TR Onvio, UltraTax, Checkpoint
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: TR Onvio, UltraTax, Checkpoint
Item 20 · call current owners
Franchisee Contacts
4 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 Services franchise?
The total investment to open a Loyalty Business Services franchise ranges from $48K – $90K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Loyalty Business Services franchise owners earn?
According to Item 19 of the Loyalty Business Services FDD, the average gross sales per unit is $294K. The median is $294K. Important context: Averaged per office, not per outlet - not comparable with per-outlet figures; Based on only 2 offices. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Loyalty Business Services?
Loyalty Business Services is franchised by Loyalty Business Services LLC d/b/a Ledgers. Its parent company is Loyalty, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Loyalty Business Services 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 Services FDD and qualifies whose outlets they describe.
What is Loyalty Business Services's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Loyalty Business Services (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 Services franchise locations are there?
As of their most recent FDD filing, Loyalty Business Services has 16 total units in the United States, including 16 franchised units and 0 company-owned units. 14 new units were opened in the latest reporting year.
Is Loyalty Business Services a good franchise to buy?
FranchiseVerdict rates Loyalty Business Services as a B-grade franchise with a verdict score of 61 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.
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.