Loyalty Business Brokers Franchise For Sale

Loyalty Business Brokers franchise opportunities

Loyalty Business Brokers was founded to bridge the gap between small business buyers and sellers, with over 31.7 million businesses in the United States that fit into these business categories.

DETAILED FRANCHISE DESCRIPTION

The franchise offered is for the operation of a Loyalty Brokers LLC d/b/a Loyalty Business Brokers unit franchise which offers a full-service business brokerage providing consultation, brokerage, valuation, and other related products and services for business sells, resales, mergers, and acquisitions under the trade name “Loyalty Business Brokers” (the “Franchised Business”). The total investment necessary to begin operation of a Loyalty Business Brokers franchise ranges from $51,950 to $88,500. This includes a fee of $45,000 that must be paid to the franchisor or its affiliate.

We offer the opportunity to operate a full-service business brokerage (“Franchised Business”) providing consultation, brokerage, valuation, and other related products and services for business sells, resales, mergers, and acquisitions (“Business Brokerage Services”). You will assist with the negotiations between the buyer and seller to seek a smooth transition of the purchase. In exchange for serving as a broker you will receive a commission to be paid from the seller’s proceeds. A Franchised Business operates under the trade name “Loyalty Business Brokers” and other such trademarks as we may designate for use from time to time which we refer to as the “Marks.” Advanced training will be required to offer mergers & acquisitions services and may require additional fees for these services.

FRANCHISE OFFER

The franchise offered is for the operation of Loyalty Business Brokers unit franchise which offers business brokerage, consultation, valuations and other services for business purchases, sales, resales as well as acquisitions under the name of Loyalty Business Brokers. You will operate a Loyalty Business Brokers business that earns commissions as you list and sell businesses for sale.

How much does the Loyalty Business Brokers franchise cost?

Loyalty Business Brokers has a franchise fees of $45,000 USD, with a total initial investment from $45,000 USD.

Initial Investment: $45,000
Royalties: 10% of monthly Gross Revenues up to $825,000. 8% of monthly Gross Revenues of $825,001 or more. There is a minimum monthly royalty fee of $250 per month. Advertising fund, up to 2% of gross revenues.
Franchise fees: $45,000
Loyalty Business Brokers grants you the right to operate a company (“Franchised Business” or “Unit Franchise”) using our System and our Marks to deliver Services within the geographic boundaries identified in Schedule 1 (the “Territory”) during the Term by and through the Franchisee Business Entity identified on the Summary Page and signature page of this Agreement (or as a sole proprietor or partnership if there is no business entity) and in conformity with the terms and conditions of this Agreement.
Other current payments: USD
Initial Franchisee Fee Upon execution of this Agreement, you will pay us an Initial Franchises Fee of $40,000. Additionally, you will pay an initial marketing/advertising fee of $5,000 (Section 3.2A). The initial fees are non-refundable once we have completed our obligation to provide Initial Training and you have successfully completed Initial Training. Royalty Fee A. Ongoing Royalty Fees You will pay to us a Royalty Fee of 10% of monthly Gross Revenues up to $825,000. You will pay to us a Royalty Fee of 8% of monthly Gross Revenues of $825,001 or more. B. Minimum Monthly Royalty Fee You will pay to us a minimum Royalty Fee of $250 per month, starting on your 7th month in operation, if the Ongoing Royalty Fee does not total at least $250 in a given month of operation. Page 8 of 26 Franchise Agreement C. Gross Revenue Gross Revenue includes all revenue generated by the Franchised Business, without taking into account any part of that total that has been or will be used for expenses. 4.3. 4.4. 4.5. 4.6. 4.7. 4.8. 4.9. Technology Fee Starting on the first day of the fourth month following your completion of Initial Training, you will pay us a technology fee of $300 per month for up to two (2) users. You will pay us an additional $200 per month per additional user. As of the Effective, the Technology Fee includes user access to our designated customer relationship management (“CRM”) platform, our company intranet, and a Microsoft 365 account. Specific technologies provided by us in connection with the Technology Fee may change during the Term, but we will take commercially reasonable efforts to ensure you have the sales technology needed to operate the Franchised Business. Third Party Software Fees You are solely responsible for all fees and expenses to third parties required to operate your Franchised Business as specified in the Operations Manual. You will reimburse us for any third-party charges we may incur on your behalf. On-Site Training Fee If we provide on-site services at your request, then you will pay to us for travel and living expenses for our staff to travel to you. Annual Convention Either you or a designated person that we approve must attend the Annual Convention. While there will be no admission fee, you are responsible for any travel related expenditures such as lodging, meals and transportation. Advertising Fees You will comply with the advertising fees and payments disclosed in Section 3 of this Franchise Agreement, above. Third Party Charges If we incur third party charges on your behalf, you will reimburse us for any such charges. Transfer Fee You will pay to us a Transfer Fee of $5,000 if you wish to transfer ownership of the rights under this Franchise Agreement, or a majority of the ownership of this Agreement or in an entity holding this Agreement. We do not charge a transfer fee for the transfer of a minority interest in the franchise or if the owners of this Agreement transfer this Agreement into an entity owned by the same owners with the same ownership percentages. Page 9 of 26 Franchise Agreement 4.10. Client Refunds If you do not resolve a client service complaint and we believe a reasonable basis exists for a refund to the client all or a portion of the client’s fees, we may pay the client directly and bill you. You will pay the charges incurred. 4.11. Audit Fee You will pay to us our cost in performing an audit of your Franchised Business, plus a Late Fee of $50 per month on any late payment found through such audit if the audit discloses an under reporting of Gross Revenues or underpayment to us by two percent (2%) or more. 4.12. Payment Terms Royalty Fees on any business sell, resale, merger, or acquisition will be paid at time of closing of client business transaction through Escrow Attorney. All other fees will be due by the 15th of each month. You must provide us with a report of all monthly Gross Revenue by the 15th of each month. We will provide an invoice to you for other fees incurred. Payment is due upon receipt. We reserve the right to modify the payment methods and schedule in our Operations Manual. We reserve the right to deduct monies that you owe to us from monies that we pay to you and pay you the net amount owed to you or charge you any net amount you may owe to us. Before you may open for business, you will execute an Automatic Bank Draft Authorization in a form substantially similar to that in Schedule 3. 4.13. Credit Card Fee If we allow you to pay any fee to us by credit card, you also will pay to us the then current amount charged by the credit card processor. 4.14. Insufficient Funds Fee You will pay to us a minimum of $50 per transaction if an electronic transfer or other payment from you to us is declined. 4.15. Late Fees For overdue amounts, you will pay to us the lesser of twelve percent (12%) per annum or the maximum rate permitted by law on any late payments you owe to us. 4.16. Assistance Fee In the event of your death or incapacity, we are entitled to reimbursement from you or your estate for any reasonable expenses incurred continuing operation of your Franchised Business, plus 10% of Gross Revenues for the period in which we operate or assist in the operation of the Franchised Business. Page 10 of 26 Franchise Agreement 4.17. Sales, Excise or Gross Receipts Tax If required by the federal government, state or locality in which your Franchised Business is located, the initial franchise fee, royalties, and other fees and costs may be subject to sales, excise, gross receipts or similar type tax, which you will pay to us at the same time and in the same manner as you pay these fees and costs to us. 4.18. Errors & Omissions Insurance Allocation If we maintain an Errors and Omissions insurance policy that provides coverage for you, on the first business day of each calendar month, you must pay us your allocation for Errors & Omissions Insurance (“E & O Allocation”). The E & O Allocation is due in lump sum and is fully earned and non-refundable when paid. You must pay the E & O Allocation for all brokers and agents in your Loyalty Business Brokers business. We do not collect these amounts on your behalf.

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BUSINESS MODEL

The FTC’s Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the Disclosure Document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19; for example, by providing information about possible performance at a particular location or under particular circumstances. We do not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor’s management by contacting Michael Nicolais at 780 Lynnhaven Parkway, Suite 240, Virginia Beach, VA 23452, the Federal Trade Commission, and the appropriate state regulatory agencies.

REQUIREMENTS TO BUY FRANCHISE

Involvement. You must operate the Franchised Business personally, unless you submit to us a General Manager who attends and successfully completes our initial Franchisee training course, and who is not later disapproved by us; however, you will be responsible to ensure that the General Manager fulfills all your responsibilities under this Agreement. Delegation of tasks to a General Manager does not reduce any liability that you may have under this agreement. If you fail to adhere to the above obligations, such failure will be deemed a default under the Franchise Agreement and, to ensure the continued integrity of the Marks and franchise system generally, we may service and manage all client accounts of the business on a temporary basis until you cure the default. We do not require that the General Manager have an equity interest in your franchise, but he or she cannot have any interest in or business relationship with any business competitor of your franchise, and must sign a written agreement to maintain confidential the proprietary information described in Section 5.1 of this Agreement, and conform with the covenants not to compete For your agents/brokers, we require that you use a form of Independent Contractor Agreement that is approved by us and we require you to follow our process for protecting our System when they terminate their relationship with you or vice versa. All of your agents/brokers must agree to and have a background check completed before using the Loyalty Brokers Marks. Page 12 of 26 Franchise Agreement B. Products and Services You must offer the Products and Services that we require as specified in the Manual. You may not offer any other Products and Services through the Franchised Business without our prior written consent. C. In Term Non-Competition Covenant You will not, during the Term of this Agreement, in the United States or its Territories, directly or indirectly, offer business brokerage, commercial real estate, or merger and acquisitions services other than through Loyalty Business Brokers. 6.2. Training A. Initial Training. You and any General Manager working for you must attend and successfully complete our initial franchisee training before you may operate the Franchised Business. We do not charge for Initial Training, but you must pay for any travel and living expenses to attend. The Initial Training must be completed within sixty days (60) days of signing the Franchise Agreement. If any in person training is required, the franchisee will be responsible for their travel, hotel and food. B. Advanced Training. You may be required to complete within thirty-six (36) months of signing your franchise agreements a Mergers and Acquisitions certification course. You will be responsible for the cost of the training through third party vendor at the then current training cost. We may also offer advanced training. If any in person training is required, the franchisee will be responsible for their travel, hotel and food. C. Employee Training. You will ensure that your employees have any training, licenses, or certifications required by applicable law. 6.3. Operations A. Operations Manual. We provide you access to our proprietary and confidential Operations Manual, as well as any other manuals and writings prepared by us for your use in operating a Franchised Business (“Manual”). We may disseminate the Manual electronically. We may revise the Manual from time to time to adjust for legal or technological changes, competition, or attempts to improve in the marketplace. B. Modification We may modify the Operations Manual to adjust for competitive changes, technological advancements, legal requirements, and continuous improvement. You will implement those changes as if they were present when you signed this Agreement. Page 13 of 26 Franchise Agreement 6.4. REPORTS AND REVIEW A. Reports. You must send us such reports at the frequency and manner that is specified in the Operations Manual. Presently, you must send to us the reports in the following table: Name of Report When Due Annual Budget October 31st of each year Annual Profit & Loss Statement and Balance Sheet By March 1st of each year as to income and expenses incurred in the prior year B. Independent Access to Information. You acknowledge that we have and that you will provide independent access to the information that will be generated or stored in your computer systems which includes, but is not limited to, customer, transaction, and operational information. You must at all times give us unrestricted and independent electronic access to your computer systems and information, as well as your security camera systems. C. Reviews. We have the right to review your business operations, in person, by mail, or electronically, and to inspect your operations and obtain your paper and electronic business records related to the Franchised Business and any other operations taking place through your Franchised Business. This includes the right to send in secret shoppers. And this also includes the right to inspect and copy all tax returns and bank statements that may show revenues from the Franchised Business. We also have the right to require that you implement a plan to resolve issues that we discern from any review we conduct. 6.5. 6.6. Indemnity You will indemnify, hold harmless, and defend us along with our affiliates, officers, directors, members, partners, employees, and agents (the “Indemnified Parties”) from and against any claim, cause of action, lawsuit, or demand (collectively “Claim”) for damage, liability, cost, or expense including reasonable attorney fees and costs (collectively “Damages”) that relates to or arises from your: (i) breach or alleged breach of this Agreement; (ii) negligence, or (iii) willful misconduct. The obligations in this Section are effective during the Term and extend to any post termination obligation. Insurance Page 14 of 26 Franchise Agreement You will maintain policies of insurance with appropriate limit to cover the risk in this section. Minimum limits are defined in the Operations Manual. You must name us as “additional insured” and provide a certificate of insurance annually. 6.7. Intellectual Property A. Ownership We exclusively own the Franchise System and any related copyright, trademark, service mark, trade secret, patent right, domain name, website, telephone number or other intellectual property (collectively “Intellectual Property”). You will not undertake to obtain Intellectual Property with respect to the Franchise System. To the extent you have gained or later obtain any Intellectual Property in the Franchise System, by operation of law or otherwise, you will disclaim such Intellectual Property and will promptly assign and transfer it entirely and exclusively to us. B. Client Data We retain all right, title, and interest in and to the Client Data during and after the Term. You may use Client Data during the Term as permitted by this Agreement and our Manual as long as the use is consistent with applicable law. “Client Data” means any and all information about Clients that may be collected in connection with their use of your Services including, but not limited to, name, telephone number, address and email address. 6.8. 6.9. Suggestions We may incorporate into our Franchise System any suggestions, enhancement requests, recommendations, or other feedback provided by you or anyone else. We will have sole and exclusive rights and title to such suggestions. Confidentiality A. Definition The term “Confidential Information” is defined as our information or data (oral, written, electronic or otherwise), including, without limitation, a trade secret, that is valuable and not generally known or readily available to third parties obtained by you from us during the term of the Franchise Agreement. The Confidential Information of ours includes all intellectual property associated with our Franchise System, Customer Data, all other materials relating to our Franchise System that are not a matter of public record, and all information generated during the performance of the Franchise Agreement. B. Confidentiality You will not directly or indirectly disclose, publish, disseminate or use our Confidential Information except as authorized herein. You may use our Confidential Information to perform your obligations under this Agreement, but in doing so will only allow dissemination of our Confidential Information on a need Page 15 of 26 Franchise Agreement to-know basis and only to those individuals that have been informed of the proprietary and confidential nature of such Confidential Information. C. Use You may only use Confidential Information to perform your obligations under this Agreement. You will avoid using Confidential Information for your own benefit or to our detriment. For the avoidance of doubt, Confidential Information cannot be used in a competing business that is detrimental to us. D. Storage You will store Confidential Information in secure location whether physically or electronically. You must notify us if the Confidential Information is lost or stolen, regardless of fault. E. Return Upon termination or expiration of this Agreement, you will return to us all of our Confidential Information embodied in tangible form, and will destroy, unless otherwise agreed, all other sources that contain or reflect any such Confidential Information. Notwithstanding the foregoing, you may retain Confidential Information as needed solely for legal, tax, and insurance purposes, but the information retained will remain subject at all times to the confidentiality restrictions of this Agreement.

Franchise advantages

• Comprehensive training and support
• Low overhead, no inventory
• Few or no employees
• Repeat Clientele, buyers to sellers, sellers to buyers
• Highly expandable and scalable
• Business-to-business only
• No previous experience required
• Flexible hours
• Work in your local community and nationwide
• Additional income sources, Merger and Acquisitions, Financing Transactions
• 4000 business brokers in the US
• Build your empire through hiring agents and account managers nationwide
• Low Investment
• Co-Brokerage Mentorship Program
• Certified Broker Program

ADDITIONAL INFORMATION

Detailed Research and Industry Reports within Businesses our Franchisees are Selling

Business model has multiple revenue streams with Back Office Fulfillment and Support LBB Corporate Office with over 30 Years Experience of M & A Advisory /Debt and Equity finance at Boutique Firms as well as Money Center Banks.

SUCCESS STORY

Andy Erskine is a seasoned merger and acquisitions specialist with over five years of experience selling businesses, having successfully closed millions of dollars in transactions. Currently, Andy serves as an Area Developer and Franchisee for Loyalty Business Brokers, where he leverages his extensive knowledge and expertise to guide business owners through the complex process of selling their companies.

Since transitioning into the business brokerage space in 2019, Andy has made a significant impact, helping small and medium-sized business owners maximize their exit strategies and achieve their financial goals. His deep understanding of business operations, strategic growth, and market trends allows him to identify and unlock value in every transaction. As an Area Developer for Loyalty Business Brokers, Andy is responsible for expanding the firm's presence while continuing to serve as a trusted intermediary for clients looking to sell their businesses.

Prior to his career in business brokerage, Andy spent nearly a decade with Management 2000, a leading Growth Strategy Consulting Firm. As President, he oversaw the firm’s day-to-day operations and worked closely with international clients, particularly those using franchising as a growth strategy. During his tenure, he consulted with over 200 different brands, focusing on strategic planning, performance improvement, and training for franchisors. This extensive experience in business consulting and franchise development laid the groundwork for his successful transition into mergers and acquisitions.

Andy's early career in the franchising industry, combined with his practical experience managing businesses and advising clients, has given him a comprehensive understanding of what it takes to sell a business effectively. Based in Houston, TX, Andy continues to make a lasting impact on his community by helping business owners navigate their exit strategies with confidence and expertise.

With his proven track record, Andy Erskine is committed to providing personalized support and expert guidance to help business owners achieve successful outcomes in the sale of their companies.