Loyalty Business Services Franchise Cost, Revenue & Review 2026
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 $68K – $100K, including a $35K franchise fee and an ongoing 10.0% royalty[2]. The 2021 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2021 FDD issuance
Overview
- Investment
- $68K – $100K
- 43rd pct Financial Ser…
- Avg gross sales
- N/A
- n=2
- Royalty
- 10.0%
- 7th pct Financial Ser…
- Units
- 2
- 9th pct Financial Ser…
- SBA charge-off
- N/A
Quick verdict · Financial Services · color = vs category peers
Green = favorable by >10% vs Financial Services 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 $68K – $100K including a $35K franchise fee, 10.0% ongoing royalty.
- RETURNSInitial franchise and royalty revenue was $0 for years ended December 31, 2020 and 2019; deferred revenue of $820,000 recorded on balance sheet.
- RISKVerdict B (Above average), verdict score 56/100 (higher is better).
- LEGAL10 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
Corporate structure & franchisor financials
- Legal entity
- Loyalty Business Services LLC d/b/a Ledgers
- Parent company
- Loyalty, LLC
- 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
- Franchisor revenue
- $0
- vs $0 prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Timothy Tyler Wynn
- Headquarters
- Virginia
- Founded
- 2019
- FDD year
- 2021
- States available
- 12
Can you afford it, and what does the money buy?
Entry cost runs 36% below the typical financial services franchise.
Source: FDD 2021 · Items 5–7
Full Item 7 breakdown15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Construction & Leasehold Improvements | $0 | $10K | |
| Furniture, Fixtures and Equipment | $5K | $7K | |
| Interior & Exterior Signage | $2K | $3K | |
| Rent and Security Deposit | $3K | $6K | |
| Software and Software Support Services | $100 | $500 | |
| Computer and Point of Sale Systems & Connectivity | $3K | $4K | |
| Training Travel and Living Expenses | $1K | $2K | |
| Opening Inventory & Supplies | $500 | $2K | |
| Grand Opening Advertisingnot refundable | $5K | $5K | |
| Permits and Licenses | $700 | $700 | |
| Utilities | $500 | $1K | |
| Insurance | $400 | $500 | |
| Professional Fees | $3K | $4K | |
| Additional Funds - 3 months | $5K | $15K | |
| Total initial investment | $68K | $100K |
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
- $68K – $100K
- Middle 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%
- percentage · 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 |
What do units actually make?
Source: FDD 2021 · Item 19
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Loyalty Business Services 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 Services unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
80%
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: 2021 FDD
Financial Performance
Initial franchise and royalty revenue was $0 for years ended December 31, 2020 and 2019; deferred revenue of $820,000 recorded on balance sheet.
Based on a sample of only 2
- Item 19 type
- historical gross revenue - outlets in operation 3+ years
- Sample size
- 2
- vs category median 72 · small
- Source filing
- FDD 2021
- The FDD edition these figures were read from
- Transparency
- 0 / 10
- vs category median 0 / 10 · typical
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.
Fee burden
Total ongoing fee load of 17.0% (near the Financial Services average).
Disclosure
Item 19 reports historical gross revenue - outlets in operation 3+ years rather than annual gross sales, so unit revenue is not directly comparable.
Operator retention
Net unit growth of +300.0% over 3 years (2 opened, 0 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 Financial Services averages
How Loyalty Business Services Compares
Is the system healthy?
Source: FDD 2021 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 2
- 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
- 0.0%
- 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
3-year detail · Item 20
- Opened (3yr)
- 16
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 22
- Franchisor's next-year forecast
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)
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)
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.
Largest disclosed settlement: $775,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Bernard Robinson & Company, L.L.P.
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 56 / 100 verdict
- 01MEDOnly 2 units in entire system indicates extremely limited scale and unproven model
- 02MEDNo Item 19 financial performance disclosure (Avg Revenue and Net Income not disclosed) prevents ROI validation
- 03HIGHExtensive litigation history including pending trade dress/tortious interference claims and 9 concluded actions suggests operational and legal instability
- 04MINORChairman's previous tenure at Liberty Tax involved securities class actions and derivative suits—significant reputational and governance risk
- 05MINORUnknown 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 2021 · 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 |
| 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
FDD download
Loyalty Business Services · FDD (2021) PDF
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 $68K – $100K, 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?
Loyalty Business Services 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 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 2 total units in the United States, including 2 franchised units and 0 company-owned units. 2 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 56 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.