About KLDiscovery Franchise
KLDiscovery is a technology and legal services franchise backed by KLDiscovery Holdings, Inc.
that provides electronic discovery, data recovery, and digital forensics solutions to law firms, corporations, and government agencies.
The brand operates in the specialized intersection of technology and legal compliance, helping clients manage, process, and review electronic data for litigation and regulatory matters.
KLDiscovery Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $5,000 | One-time payment upon signing |
| Royalty Fee | 8% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Total Investment Range | $118,315 – $162,765 | Includes build-out, inventory, working capital |
The investment range of $118K–$163K reflects variability in build-out costs, store size, lease terms, and market. The ongoing royalty fee is 8% of Gross Revenue of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Office furniture4 | $0 | $1,000 |
| Office equipment & supplies4 | $100 | $150 |
| Technology System Hardware and Pre- Installed Software 5 | $3,000 | $4,000 |
| Technology System Additional Software5 | $315 | $315 |
| Business Licenses and Permits | $250 | $1,500 |
| Insurance6 | $9,500 | $35,000 |
| Initial Marketing Expenses7 | $10,000 | $15,000 |
| Costs and Expenses for Initial Training Program8 | $0 | $3,000 |
| Internet Connection9 | $150 | $300 |
| Membership and Association Dues10 | $0 | $1,000 |
| Professional Fees11 | $5,000 | $7,500 |
| Additional Funds – 3 Months12 | $40,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Technology Fee | $3,000 |
| Audit Fee | You pay all costs related to our audit of your books and records if we conduct t |
| Administrative Services Fee | 5% of Gross Revenue |
| Interest | Lesser of 1.5% per month or the highest commercial contract interest rate allowe |
| Additional or Ongoing Training | $1,250 |
| PM Training (After Opening) | $3,500 |
| Non-Compliance Fee | $500 |
| Insufficient Funds | $25 |
| Alternative Supplier Evaluation Fee | $10,000 |
| Insurance | Cost of premium paid by us, plus a 10% service charge |
| Taxes | Amount of taxes due, plus a 10% administrative fee |
| Lease/Rent and Deposit3 | $0 |
| Office furniture4 | $0 |
| Office equipment & supplies4 | $100 |
| Business Licenses and Permits | $250 |
| Insurance6 | $9,500 |
| Initial Marketing Expenses7 | $10,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 21 hours on-the-job |
| On-the-Job Training | 21 hours |
| Training Location | At our headquarters or remotely |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | exclusive |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Renewal Term | One (1) additional term equal to 5 years. |
| Termination for Cause | We may terminate only upon an uncured or non- curable material event of default. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Does not offer financing. |
KLDiscovery Franchise Earnings — Item 19
KLDiscovery does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
KLDiscovery Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
KLDiscovery System Growth
KLDiscovery currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | ||
| 2020 | 0 | ||
| 2020 | 0 | ||
| 2021 | 0 | ||
| 2021 | 0 | ||
| 2021 | 0 | ||
| 2022 | 0 | ||
| 2022 | 0 | ||
| 2022 | 0 |
KLDiscovery Franchise — FAQ
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