Leadership Management Franchise
Cost, fees, owner earnings, closure rate and litigation for a Leadership Management franchise — pulled from the franchisor's own public FDD (2025), not its sales material.
Disclosure honesty
Leadership Management discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
No financial performance representations disclosed. Franchisor explicitly states it makes no representations about franchisee future performance or past outlet performance.
What a Leadership Management franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $15,000 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Total recurring fees | 6% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $20,000 – $27,500 | Item 7 — franchisor's own low/high estimate |
Royalty capped at $10,000/year maximum. $5,000 transfer fee (waived for family/controlled entities). $1,500 renewal fee per 5-year term.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Leadership Management system size and owner turnover
| Total outlets | 110 |
| Ceased operations | 1 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 1 |
| Closure rate | 0.9% of outlets |
System declined 2 outlets (2024); 7 non-renewals (2024); 1 ceased operations other reasons.
From Item 20 of the FDD 2025. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Leadership Management worth it? — how it compares to 71 similar franchises
| Ongoing fees | 6% of sales | lower than most (median 9%) |
| Startup cost | from $20,000 | cheaper than most (median $295,540) |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 0.9% of outlets | about average |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every fitness & gyms franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Leadership Management
The franchisor's framing: No financial performance representations disclosed. Franchisor explicitly states it makes … We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Leadership Management franchise — frequently asked
- How much does a Leadership Management franchise cost?
- The FDD lists a total initial investment of about $20,000–$27,500, including a $15,000 initial franchise fee.
- How much do Leadership Management franchise owners make?
- Leadership Management discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the Leadership Management franchise fees?
- Leadership Management's FDD discloses a $15,000 initial franchise fee, a 6% royalty on gross sales, for roughly 6% of gross sales in recurring fees before rent, labor, or debt service. Royalty capped at $10,000/year maximum. $5,000 transfer fee (waived for family/controlled entities). $1,500 renewal fee per 5-year term.
- What is the Leadership Management franchise profit margin?
- Leadership Management discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the Leadership Management franchise failure rate?
- System declined 2 outlets (2024); 7 non-renewals (2024); 1 ceased operations other reasons.
- How many Leadership Management locations are there?
- Leadership Management's FDD reports 110 total outlets, with 1 that ceased operations in the most recent reporting year and 1 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Leadership Management have complaints or lawsuits?
- Leadership Management discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Leadership Management franchise worth it?
- It depends on the numbers, not the pitch. Leadership Management scores F on disclosure honesty, carries about 6% of sales in ongoing fees. Get the real owner take-home before you sign.
Own a Leadership Management? Add your real numbers (anonymous)
We publish only aggregated benchmarks — never your name. Contribute and we'll show you how your numbers compare.
Compare Leadership Management to similar franchises
See all franchises ranked by disclosure honesty →
Source: MN CARDS 34430-202506-08 (Clean FDD 2025). FranchiseValidate is independent and not affiliated with Leadership Management or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.