About Loyalty Business Servicesd/b/a Loyalty Business Services - Unit Franchise
Loyalty Business Services is a financial services franchise offering business advisory, bookkeeping, payroll processing, and income tax preparation to small and medium sized businesses.
Each location delivers essential financial support that helps business owners manage their books, stay compliant, and make informed decisions without hiring a full time accounting department.
The franchise fee is $40,000, and Loyalty Business Services has been franchising since 2020 under its parent company, Loyalty, LLC.
Loyalty Business Servicesd/b/a Loyalty Business Services - Unit Franchise Cost & Fees
Minimum Investment
$68K
Average Investment
$84K
Maximum Investment
$100K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 14% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | The greater of 3% of previous month’s Gross Revenues of $500 | National brand fund |
| Total Investment Range | $68,200 – $99,700 | Includes build-out, inventory, working capital |
The investment range of $68K–$100K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (14% of Gross Revenues) and marketing fee (The greater of 3% of previous month’s Gross Revenues of $500) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Note 1) | $40,000 | $40,000 |
| Construction & Leasehold Improvements (Note 2) | $0 | $10,000 |
| Furniture, Fixtures and Equipment (Note 3) | $5,000 | $7,000 |
| Interior & Exterior Signage (Note 4) | $2,000 | $3,000 |
| Rent and Security Deposit (Note 5) | $3,000 | $6,000 |
| Software and Software Support Services (Note 6) | $100 | $500 |
| Computer and Point of Sale Systems & Connectivity (Note 7) | $2,500 | $4,000 |
| Training Travel and Living Expenses (Note 8) | $1,000 | $2,000 |
| Opening Inventory & Supplies (Note 9) | $500 | $1,500 |
| Grand Opening Advertising (Note 10) | $5,000 | $5,000 |
| Permits and Licenses (Note 11) | $700 | $700 |
| Utilities (Note 12) | $500 | $1,000 |
| Insurance (Note 13) | $400 | $500 |
| Professional Fees (Note 14) | $2,500 | $3,500 |
| Additional Funds – 3 months (Note 15) | $5,000 | $15,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 for a transfer of the franchise or a majority interest in it; $2,500 upon transfer of minority interest |
| Renewal Fee | Variable |
| Technology Fee | Approximately $200 - $300 per month plus 3% of credit card sales |
| Audit Fee | Cost of Audit plus $50 per month Late Fee on any late payment |
| Local Advertising | $3,000/year minimum |
| Additional Assistance | Then current rate, presently $50/hour |
| Insufficient Funds Fee | $50 per transaction |
| User Fees | Our then current fees |
| Interest and Penalties | Actual amount incurred |
| Client Refunds | The amount of any fee we refund to a client |
| Assistance Fee in the event of death or incapacity | Our reasonable expenses plus 10% of Gross Revenues for the period in which we operate or assist in the operation of the Franchised Business. |
| Sales, Excise, or Gross Receipts tax | Actual amount of tax paid |
| Third party charges that we incur on your behalf | Actual amount of charge |
| Late Fee | Lesser of 1.5% per month or the highest rate allowable by law of the state where franchised is located |
| Indemnity | Actual loss sustained |
| Attorney Fees and Costs | Actual amount incurred |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 days |
| Classroom Training | 25 |
| On-the-Job Training | 0 |
| Training Location | Virginia Beach, Virginia, another designated training location, or online. |
| Additional Training | Franchisor may elect to offer and require franchisees to attend additional training or seminars, either live or electronically. Franchisees must pay travel and living expenses for such training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | minimum population of approximately 65,000 residents |
| Description | A specific geographic region defined by zip codes, natural, or political boundaries as set forth on Schedule 1 to the Franchise Agreement. The territory will normally include a population of 65,000 residents and at least 3,500 businesses. The franchisor reserves the right to use other channels of distribution (Internet, catalog sales, telemarketing, direct marketing) within the territory, but normally directs inquiries to the franchisee. The franchisor or affiliates may also make sales within the territory using different trademarks. Franchisees may not solicit orders outside their territory but may accept them. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | successive terms |
| Renewal Fee | any required renewal fee (if any) |
| Renewal Conditions | Franchisee must be in compliance with the Agreement, notify franchisor in writing at least 90 days before expiration, execute a general release of all claims, and sign the then current Agreement (which may not contain materially different terms). |
| Transfer Fee | $5,000 |
| Transfer Conditions | Franchisee must be current in monetary obligations, in compliance with the Franchise Agreement, execute transfer/amendment/release forms, provide proposed transfer documents, transferee must meet franchisor criteria, execute current Franchise Agreement, pay transfer fee, complete initial training, comply with post-termination provisions, obtain necessary licenses/permits, obtain lessor approval, comply with all transfer laws, and the purchase price/terms must not be burdensome to transferee. |
| Termination for Cause | Franchisor can terminate if franchisee defaults (e.g., violates agreement, owes money, fails initial training, fails to open on time, becomes insolvent, commits fraud, abandons business, etc.). Some defaults are curable within 30 days, others are non-curable and lead to immediate termination. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise, no competition allowed in the United States and its territories (subject to applicable state law). After termination or expiration, franchisee may not compete in the Territory or within 25 miles of the Territory (or any other outlet of ours) for 2 years (subject to applicable state law) by providing or offering 'Restricted Activities' (advisory, compliance, recordkeeping or tax services). |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must participate personally in the day-to-day operation of your franchised Business, unless we permit otherwise in writing. The franchisee must devote time, attention, and best efforts. A Business Manager must be designated, approved by the franchisor, and complete initial training. If the franchisee is an individual, they must serve as Business Manager. All owners must guarantee obligations. No change to owners or ownership percentages without prior written consent. Owners and Designated Managers must pass a background check. |
| Required Suppliers | Franchisees must purchase bookkeeping and payroll services from the franchisor unless they provide such services themselves. Business support services must be purchased from the franchisor. Computer hardware, software, internet, and Point of Sale systems must meet franchisor specifications, which may include vendor designations. Furniture, fixtures, equipment, and signage must be purchased from designated suppliers or meet specifications. Insurance must meet franchisor specifications and name the franchisor as an additional insured. EFIN/PTIN must be obtained from the IRS. |
| Supply Restrictions | Franchisor is an approved supplier of advertising material and bookkeeping/payroll services (but not the only one for these). Franchisor is the only approved supplier for business support services. Franchisor specifies computer hardware/software/POS systems, furniture, fixtures, equipment, and signage. Franchisees must obtain insurance as specified by the franchisor. Alternative suppliers require franchisor approval, which costs $100/hour plus costs for evaluation. |
| Franchisor Revenue from Suppliers | Neither the franchisor nor its affiliates derived revenue or other material consideration from required purchases or leases by franchisees in the last fiscal year ended December 31, 2020. However, the franchisor may do so in the future. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor offers financing for a portion of the Initial Franchise Fee, up to 50% of the fee. A minimum down payment of 50% is required. The interest rate is 12% per annum (including finance charges), with a repayment period of 24 months. No security is required, but if the franchisee is an entity, its owners must personally guarantee the debt. There is no prepayment penalty. Default leads to accelerated obligation to pay the entire amount due, court costs, attorney fees, and franchise termination. Franchisees waive the right to jury trial, homestead and other exemptions, and notice of dishonor. |
Loyalty Business Servicesd/b/a Loyalty Business Services - Unit Franchise Earnings — Item 19
Loyalty Business Servicesd/b/a Loyalty Business Services - Unit 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.
Loyalty Business Servicesd/b/a Loyalty Business Services - Unit 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.
Loyalty Business Servicesd/b/a Loyalty Business Services - Unit Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Loyalty Business Servicesd/b/a Loyalty Business Services - Unit System Growth
Total Units
2
Franchised
2
Company-Owned
0
Loyalty Business Servicesd/b/a Loyalty Business Services - Unit currently operates 2 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 |
|---|---|---|---|
| 2018 | 0 | 0 | 0 |
| 2019 | 0 | 0 | 0 |
| 2020 | 2 | 0 | 2 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
0
Net Income
$-362,189
Total Assets
$1.0M
Audited by Bernard Robinson & Company, L.L.P. for year ending December 31.
Loyalty Business Servicesd/b/a Loyalty Business Services - Unit Franchise — FAQ
The total investment to open a Loyalty Business Servicesd/b/a Loyalty Business Services - Unit franchise ranges from $68,200 to $99,700, per their Franchise Disclosure Document. This includes the initial franchise fee of $40,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Loyalty Business Servicesd/b/a Loyalty Business Services - Unit charges a royalty fee of 14% of Gross Revenues of gross sales, plus a The greater of 3% of previous month’s Gross Revenues of $500 contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Loyalty Business Servicesd/b/a Loyalty Business Services - Unit 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 Loyalty Business Servicesd/b/a Loyalty Business Services - Unit to ensure you have the most up-to-date version.
Loyalty Business Servicesd/b/a Loyalty Business Services - Unit 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.
Loyalty Business Servicesd/b/a Loyalty Business Services - Unit has been franchising since 2020. The FDD shows an investment range of $68,200-$99,700, a 14% of Gross Revenues royalty, and includes an Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $40,000 and the total investment ranges from $68,200 to $99,700 depending on location size and market. 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 Loyalty Business Servicesd/b/a Loyalty Business Services - Unit and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Loyalty Business Servicesd/b/a Loyalty Business Services - Unit or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com