Loyalty Business Services
Bottom line
- Total investment $68K – $100K including a $40K franchise fee, 14.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 76/100.
- 10 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
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 Services unit return on the cash you put in?
Unlevered ROIC · per unit
48%
In Yale's "attractive" band (30–60%)
Overview
About
Loyalty Business Services appears to provide customer loyalty program management and consulting services to small and mid-sized businesses. Franchisees likely manage client relationships, implement loyalty platforms, and generate recurring revenue through program setup and management fees. Day-to-day operations probably involve sales prospecting, client onboarding, system administration, and ongoing customer support.
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 12 · 2 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.
2
states with franchisees (per FDD Item 12)
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
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.
Score breakdown · what drove the 76 / 100 rating
- 01MEDOnly 2 units in entire system indicates extremely limited scale and unproven model
- 02MED14% royalty is high relative to undisclosed average revenues—profitability unclear
- 03MEDNo Item 19 financial performance disclosure (Avg Revenue and Net Income not disclosed) prevents ROI validation
- 04HIGHExtensive litigation history including pending trade dress/tortious interference claims and 9 concluded actions suggests operational and legal instability
- 05MINORChairman's previous tenure at Liberty Tax involved securities class actions and derivative suits—significant reputational and governance risk
- 06MINOR10-year term with $40,000 franchise fee locks capital into unproven 2-unit franchise with no growth trajectory
- 07MINORUnknown unit growth rate suggests stagnation or inability to attract franchisees despite being established
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
3 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Loyalty Business Services · FDD (2021) PDF