About LMS Franchise
LMS Franchising is a franchise system that has been offering business opportunities since 2014.
The company provides franchise owners with an established operational model, training, and ongoing support to build and grow their business.
The franchise fee ranges from $15,000 to $30,000.
LMS Franchise Cost & Fees
Minimum Investment
$38K
Average Investment
$56K
Maximum Investment
$74K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $15,000 – $30,000 | One-time payment upon signing |
| Royalty Fee | 8% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales, currently $100 per month | National brand fund |
| Total Investment Range | $38,200 – $74,400 | Includes build-out, inventory, working capital |
The investment range of $38K–$74K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (8% of Gross Sales) and marketing fee (Up to 2% of Gross Sales, currently $100 per month) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $15,000 | $30,000 |
| Construction and Leasehold Improvements | $0 | $0 |
| Lease Deposits – 3 Months | $0 | $1,350 |
| Furniture, Fixtures and Equipment | $0 | $1,500 |
| Signage | $0 | $0 |
| Computer, Software and Business Management System | $0 | $2,500 |
| Grand Opening Marketing | $0 | $5,000 |
| Initial Inventory | $15,000 | $15,000 |
| Utility Deposits | $0 | $300 |
| Insurance Deposits – 3 Months | $550 | $1,100 |
| Travel for Initial Training | $800 | $1,400 |
| Professional Fees | $3,000 | $5,000 |
| Licenses and Permits | $350 | $750 |
| Additional Funds – 3 months | $3,500 | $10,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 |
| Renewal Fee | $6,000 |
| Technology Fee | Up to $500 per month, currently $50 per month |
| Audit Fee | Cost of audit |
| Royalty – Virtual Program | 8% of Gross Sales |
| Franchisee Directed Local Marketing | Up to 2% of Gross Sales. Currently, we do not require you to spend any amount |
| Online Ordering, Customer Rewards, and Gift Cards | As invoiced and as incurred (Currently not implemented by us but may be implemented in the future) |
| Local and Regional Advertising Cooperatives | As established by cooperative members, but not exceeding 2% of Gross Sales |
| Annual Conference Attendance Fee | Our then current conference fee, not greater than $750 |
| Additional Employee Initial Training | Our then current training fee, currently $250 per person per day |
| Supplemental On-Site Training | Our then current daily rate per trainer, plus expenses we incur. Current rate is $250 per day. Subject to increase to $500 per day |
| Continuing Education and Conferences | Will vary under circumstances. Estimated not to exceed $250 per person per day, plus expenses we incur. Registration fee for conferences. |
| Interest | 18% per annum from due date |
| Reporting Non-Compliance | $150 per occurrence |
| Operations Non-Compliance | $450 to $1,000 per occurrence |
| Payment Non-Compliance | $150 per occurrence |
| Collections | Actual fees, costs, and expenses |
| NSF Check Fee of Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law |
| Non-Compliance (Franchise Agreement breach) | Actual fees, costs, and expenses |
| Supplier Review | Actual fees, costs, and expenses, subject to a minimum of $100 per supplier or product |
| Management Service | Actual costs incurred by us |
| Supplemental System Curriculum and Materials | $200 to $900 per unit of supplemental System Curriculum, with a minimum spend of $5,000 per year. Minimum is subject to a 10% increase per annum |
| Website Maintenance and Promotion Fee | Currently $65 to $125 per hour |
| Background Check Service Fee | Currently $30 to $45 per person for each county and national background check |
| Resale Assistance Fee | As agreed, generally a percentage of the total consideration you receive for the sale of your Franchised Business |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 39 hours |
| Classroom Training | 28 hours |
| On-the-Job Training | 11 hours |
| Training Location | Corporate headquarters in St. Louis, Missouri or as otherwise specified. |
| Additional Training | Supplemental on-site training and continuing education may be required. Fees apply for additional persons attending initial training ($250 per person per day) and for supplemental/continuing education ($250 per trainer per day plus expenses). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Varies depending on local factors and whether it's a Standard Model Territory (minimum 100 Qualifying Schools) or Mini-Model Territory (less than 75 Qualifying Schools). |
| Description | Designated by zip code, boundary streets, highways, county lines, designated market area, and/or other recognizable demarcations. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | 2 additional 5-year terms |
| Renewal Fee | $6,000 |
| Renewal Conditions | Franchisee must be in compliance with agreements, provide 180 days written notice, sign current Franchise Agreement and related agreements, sign a general release, remodel/upgrade business, secure legal right to occupy premises, and meet all other renewal requirements. Owners and spouses must personally guarantee obligations. |
| Transfer Fee | $5,000 |
| Transfer Conditions | Franchisee must provide 30 days written notice, satisfy all accrued monetary and other obligations, not be in default, transferee must be bound by terms, transferee's owners/spouses must guarantee, franchisee/owners/spouses must execute general release, transferee must assume obligations, transferee must improve/modify/refurbish/renovate/upgrade business, transferee's managing owner/managers/employees must complete training, pay transfer fee, franchisor approval of terms/price, transferee's employees/directors/officers/independent contractors/agents with access to confidential info must execute confidentiality agreement, franchisee must subordinate obligations of transferee to franchisor, transfer must comply with all applicable laws, transfer of business/lease/assets only with agreement transfer. |
| Termination for Cause | Franchisor can terminate for various defaults, some curable (10 or 30 days to cure) and some non-curable (immediate termination). Curable defaults include failure to pay fees, failure to timely lease/develop/open, failure to operate according to standards, failure to comply with laws (if not a threat to health/safety), failure to maintain insurance, failure to satisfy vendors. Non-curable defaults include 3 or more curable defaults, intentional/knowing breach causing harm, intentional/knowing/negligent violation of laws posing health/safety threat, abandonment, loss of premises, misrepresentation of material information, intentional inaccuracies in reports, unauthorized transfer, disclosure of confidential information, activities injuring the brand, felony conviction, unethical conduct, failure to complete training, misappropriation of marks. |
| Non-Compete Period | 24 months |
| Non-Compete Details | During term: no involvement in any competitive business and must comply with confidentiality, non-disclosure and non-solicitation covenants. Post-termination: no involvement, ownership or interest whatsoever for 24 months in any competing business in: Designated Territory; a 25-mile radius of Designated Territory; a 25-mile radius of any other Little Medical School Business; and comply with confidentiality, non-disclosure and non-solicitation covenants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Managing Owner must complete initial training and be approved. While personal day-to-day participation is recommended, an approved Operating Manager can be hired to supervise and manage on-site operations. |
| Required Suppliers | Franchisor or its affiliates (Mason MedStat Media, LLC for curriculum/program packages/instructor kits; LMS Wholesale, LLC for toys) and designated suppliers. |
| Supply Restrictions | Franchisees must exclusively use System Curriculum and Materials, System Supplies, and designated Business Management System. Branded furniture, fixtures, and signage must be purchased from designated exclusive suppliers. Unbranded furniture and fixtures can be from any supplier meeting specifications. |
| Franchisor Revenue from Suppliers | As of December 31, 2021, we have not received revenue from suppliers from franchisee purchases of source restricted products or services. |
LMS Franchise Earnings — Item 19
LMS does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
LMS 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.
LMS Litigation & Risk Flags
Clean Litigation RecordLMS has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
LMS System Growth
Total Units
24
Franchised
21
Company-Owned
3
LMS currently operates 21 franchised locations and 3 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 8 | 2 | 40 |
| 2020 | 2 | 6 | 36 |
| 2021 | 0 | 12 | 24 |
Transfers: 0 | Closures: 12
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Revenue
$407K
Net Income
$-180,783
Total Assets
$70K
Audited by Scheffel Boyle for year ending December 31.
LMS Franchise — FAQ
The total investment to open a LMS franchise ranges from $38,200 to $74,400, per their Franchise Disclosure Document. This includes the initial franchise fee of $15,000 – $30,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
LMS charges a royalty fee of 8% of Gross Sales of gross sales, plus a Up to 2% of Gross Sales, currently $100 per month contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the LMS Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from LMS to ensure you have the most up-to-date version.
LMS does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
LMS has been franchising since 2014. The FDD shows an investment range of $38,200-$74,400, a 8% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $15,000 – $30,000 and the total investment ranges from $38,200 to $74,400 depending on location size and market. A minimum of $3,500 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from LMS and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with LMS or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com