TeamLogic IT Franchise Cost, Revenue & Review 2026
- Investment
- $110K – $145K
- Disclosed sales
- $1.3M
- gross sales, not profit
- SBA charge-off
- 7.7%
- on 60 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
TeamLogic IT is a B2B franchise providing managed IT services, network management, cybersecurity, cloud, and help-desk support, to small and mid-size businesses. Franchisees run a local MSP staffing technicians and managing recurring service contracts.
FranchiseVerdict summary · 2026
A TeamLogic IT franchise requires a total initial investment of $110K – $145K, including a $50K franchise fee and an ongoing 7.0% royalty[2]. Per the 2026 FDD, average revenue per franchisee was $1.3M. This franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages[2]. SBA 7(a) loans show a 7.7% charge-off rate across 60 loans[1]. FranchiseVerdict grade: A (Strongest tier), 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 scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $110K – $145K
- 37th pct Business Serv…
- Avg gross sales
- $1.3M
- Per franchisee, not per outletOutlet subset
- Royalty
- 7.0%
- 21st pct Business Serv…
- Units
- 344
- 61st pct Business Serv…
- SBA charge-off
- 7.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business 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 $110K – $145K including a $50K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage revenue per franchisee of $1.3M/year (reported for a subset of outlets rather than the whole system). Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
- RISKVerdict A (Strongest tier), verdict score 96/100 (higher is better). SBA loan charge-off rate of 7.7% across 60 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +33 franchised outlets in the latest year (33 opened, 1 closed) (Item 20).
- GROWTHSystem growing at 22.0% CAGR over 3 years with 344 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- TeamLogic, LLC
- Parent company
- Franchise Services, LLC
- FDD Item 1, page 6 of the 2026 FDD
- Ultimate parent
- KOAH, Inc.
- FDD Item 1, page 6 of the 2026 FDD
- CEO title
- Chief Executive Officer and Director
- Richard Lowe
- Incorporated in
- Delaware
- HQ
- 26722 Plaza, Mission Viejo, California 92691
- Auditor
- CliftonLarsonAllen LLP
- Audited financials
- Franchisor revenue
- $23.1M
- vs $20.3M prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Same owner · FDD Item 1, page 6
3 other brands on this site name KOAH, Inc. as parent or ultimate parent in their own FDD.
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
- Richard Lowe
- Headquarters
- CA
- Founded
- 2004
- FDD year
- 2026
- States available
- 40
Can you afford it, and what does the money buy?
Entry cost is about typical for a business services franchise (near the category median).
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown6 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $50K | |
| Help Desk Service Feenot refundable | $1K | $1K | |
| Vehicle Lease and Graphicsnot refundable | $0 | $3K | |
| Initial Equipmentnot refundable | $7K | $11K | |
| Real Estate Leasehold Improvementsnot refundable | $900 | $2K | |
| Additional Funds (10 to 12 months)not refundable | $61K | $78K | |
| Total initial investment | $110K | $145K |
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
- $110K – $145K
- Top 40% of category vs category
- Liquid capital req'd
- $61K – $78K
- Middle of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 7.0%
- typical 6–8%
- Ad fund
- 1.2%
- typical 3–5%
- Total fee load
- 8.2%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.2% of gross sales |
| Technology fee | $300 |
| Training fee | $1K |
| Transfer fee | $10K |
| Renewal fee | $2K |
| Total fee load | 8.2% of rev |
What do units actually make?
Average unit sales run 86% above the business services norm.
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Reported for a subset of outlets rather than the whole system
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 TeamLogic IT 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
$197K
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 TeamLogic IT 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 franchisee, not per outlet - not comparable with per-outlet figures
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $1.3M
- Per franchisee, per year — not per outlet
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 182 franchisees
- vs category median 37 · large
- Range (low → high)
- $9K→$21.7MCited, not corroborated — printed on page 33 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $144K→$3.5M
- Bottom 25% → top 25%, per franchisee
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 3 / 10
- vs category median 3 / 10 · typical
Compared against 296 Business 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 franchisee generates $1.3M/year in gross sales. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 8.2% (near the Business Services median).
Disclosure
Transparency score 3/10 — moderate disclosure depth. Average and range data are available but detailed cohort breakdowns may be limited.
Operator retention
System expanding at 22.0% CAGR over 3 years across 344 units — operators are staying and new ones are joining.
Multi-unit rate
Only 5% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
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 Business Services medians
How TeamLogic IT Compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Business 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
- 344
- Opened
- 33
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 1
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Multi-unit owners
- 4.8%
- Net growth (3-yr)
- +22.0%
- Net unit change over 3 years
- 3-yr CAGR
- +22.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 1
- Transferred
- 11
- Reacquired
- 0
- Franchisor bought back
- Ceased ops
- 33.3%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 40 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.
40
states with franchisees (per FDD Item 12)
Where the owners are · Item 20 owner list
12 current owners across 12 states.
- BE 1
- CH 1
- CI 1
- EL 1
- FA 1
- HA 1
- HO 1
- JA 1
- KA 1
- LI 1
- OR 1
- WI 1
Counts only, from the list the franchisor prints in Item 20; 168 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 60
- Loan volume
- $18.9M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- 7.7%
- on 60 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 92.3%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 20
- Defaults
- 2
- Typical loan rate
- 7.7%
- avg rate to borrowers
- vs industry
- 7.7%
- brand is above its industry ↑
- Jobs supported
- 284
- 1.5 per loan
- Lender concentration
- 22%
- top lender's share
Borrower mix: 71% went to startups / new businesses, 29% to established operators
Vintage analysis
TeamLogic IT charge-off rate by loan vintage
Top lenders financing TeamLogic IT franchisees
Showing 3 of 20 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for TeamLogic IT from SBA 7(a) FOIA data.
- Principal loss rate
- 1.0%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 7.67%
- Avg chargeoff amount
- $92K
- Lender concentration
- 21.7%
- Job velocity
- 1.5 per $100K
- Startup risk premium
- +12.5pp
- NAICS benchmark
- 7.7%
- NAICS 541513
- Jobs supported
- 284
Top SBA lendersTop lender holds 22% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | United Midwest Savings Bank National Association | 13 | $1.9M | 33.3% |
| 2 | Stearns Bank National Association | 9 | $985K | 0.0% |
| 3 | The Huntington National Bank | 6 | $666K | 0.0% |
| 4 | TD Bank, National Association | 4 | $1.3M | 0.0% |
| 5 | Wells Fargo Bank National Association | 3 | $872K | 0.0% |
| 6 | Readycap Lending, LLC | 3 | $426K | N/A |
| 7 | Byline Bank | 3 | $5.8M | 0.0% |
| 8 | First Bank of the Lake | 3 | $345K | N/A |
| 9 | Celtic Bank Corporation | 3 | $405K | 0.0% |
| 10 | PNC Bank, National Association | 2 | $940K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| FLFlorida | 11 | 0 | 0.0% |
| OHOhio | 7 | 0 | 0.0% |
| PAPennsylvania | 5 | 0 | 0.0% |
| CACalifornia | 4 | 0 | 0.0% |
| TXTexas | 4 | 0 | 0.0% |
| MIMichigan | 3 | 1 | 100.0% |
| MOMissouri | 3 | 0 | 0.0% |
| NJNew Jersey | 3 | 0 | 0.0% |
| ALAlabama | 2 | 0 | 0.0% |
| COColorado | 2 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 7.7% — 52% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Large IT-services franchisor with 344 units, strong financials (net worth $5.85M, revenue $23.1M, net income $9.7M) and 22% growth. One regulatory matter: a Jan 2024 California consent order for salesperson-disclosure violations ($8,000 penalty). Otherwise clean.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
January 2024 Consent Order with California Commissioner of Financial Protection and Innovation: TeamLogic sold 4 franchises via brokers without on-file Salesperson disclosures (2017-2023), violating Corp. Code Sec. 31210 four times; paid $8,000 administrative penalty.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 96 / 100 verdict
- 01MINORSingle regulatory consent order (CA, $8,000 penalty)
- 02MINORStrong financials: net worth $5.85M, net income $9.7M
- 03MED344 units, +22% growth, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.2% 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 sizeℹ | Geographical |
| 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 | Yes |
| Transfer requires consent | Yes |
| Termination notice | 20 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | Orange County, California |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 1 |
View Item 3 litigation summary
January 2024 Consent Order with California Commissioner of Financial Protection and Innovation: TeamLogic sold 4 franchises via brokers without on-file Salesperson disclosures (2017-2023), violating Corp. Code Sec. 31210 four times; paid $8,000 administrative penalty.
Items 10, 11
Training & Operations
- Classroom training
- 94 hrs
- On-the-job training
- 84 hrs
- Training location
- Mission Viejo, California
- Ongoing training
- Required
- Field support
- 87 hrs/yr
- On-site visits per year
- Time to open
- 2 mo
- From signing to launch
- Site selection
- franchisee, subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Professional Services Automation (PSA) software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Professional Services Automation (PSA) software
Item 20 · call current owners
Franchisee Contacts
180 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 TeamLogic IT franchise?
The total investment to open a TeamLogic IT franchise ranges from $110K – $145K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do TeamLogic IT franchise owners earn?
According to Item 19 of the TeamLogic IT FDD, the average gross sales per unit is $1.3M. Important context: Averaged per franchisee, not per outlet - not comparable with per-outlet figures; Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns TeamLogic IT?
TeamLogic IT is franchised by TeamLogic, LLC. Its parent company is Franchise Services, LLC. The ultimate parent named in the FDD is KOAH, Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the TeamLogic IT 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 TeamLogic IT FDD and qualifies whose outlets they describe.
What is TeamLogic IT's franchise failure rate?
Based on SBA 7(a) loan data, TeamLogic IT has a charge-off rate of 7.7% across 60 loans, meaning 7.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many TeamLogic IT franchise locations are there?
As of their most recent FDD filing, TeamLogic IT has 344 total units in the United States, including 344 franchised units and 0 company-owned units. 33 new units were opened in the latest reporting year.
Is TeamLogic IT a good franchise to buy?
FranchiseVerdict rates TeamLogic IT as a A-grade franchise with a verdict score of 96 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.