Franchising Since: 1966
Headquarters: Waco, Texas
Estimated Number of Units: 495
Franchise Description: The franchisor is Leadership Management, Inc. (LMI). The franchisor franchises the right to sell and service executive, management and leadership development programs and assessments to individuals and corporate clients. The franchise will market programs, courses and tapes in the general fields of knowledge, education and communications, with special emphasis on leadership, supervisory and executive development.
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Territory Granted: Franchisees will not receive an exclusive territory. The franchise may be operated from any location, it is not site specific. The franchisor may establish other franchises that may compete with the franchisee. The franchisor has not established, nor does it presently intend to establish, any company-owned outlets using LMI's trade name or trademarks.
Obligations and Restrictions: Franchisees must designate and retain at all times an individual to serve as the “operating principal” under the Franchise Agreement. Franchisees may serve in that position. The person designated will meet the standards set forth for this position, as provided in the manuals or other written instructions. Franchisees must sell or offer for sale products and services, in the manner and style required by the franchisor. Franchisees must not deviate from the standards and specifications without first obtaining written consent from the franchisor. After the first full calendar year beginning January 1, and during each calendar year thereafter while the Franchise Agreement is in effect, the franchisee agrees to purchase a minimum of $2,500 worth of the franchisor’s products at the then current franchisee prices. Franchisees must register all new clients monthly (including name, address, phone numbers, etc.) with the franchisor. All clients registered by franchisees shall revert to and become the exclusive property of LMI if the franchisee terminates their Franchise Agreement.
Term of Agreement and Renewal: The length of the initial franchise agreement is five years. The franchise may be renewed for consecutive five-year periods unless the agreement has been terminated due to violations.
Financial Assistance: Financing is available for the franchise prospect by the franchisor, dependent upon the availability of funds for such financing as well as the credit rating of the prospective franchisee. The franchisor will finance up to $10,000 at 0% interest, with monthly payments up to 36 months.
Estimated Initial Investment
Name of Fee | Low | High |
Initial Franchise Fee | $15,000 | $15,000 |
Marketing and Business System Manuals, etc. | Included in the franchise fee | |
Travel Expenses | $1,000 | $2,000 |
Real Estate and Improvements | $0 | $0 |
Miscellaneous Opening Costs | $1,000 | $1,500 |
Additional Funds (to cover working capital needs for a start-up period of 1 to 3 months) | $3,000 | $9,000 |
ESTIMATED TOTAL | $20,000 | $27,500 |
Other Fees
Type of Fee | Amount |
Transfer | $5,000 |
Renewal | $1,500 |
Royalties | 6%; Not to exceed $10,000 per year. |
Registration Fees | $50 to $500 per person. |
Travel Expense Relating to Training | $500 to $1,500 estimate. |
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