KLDiscovery franchise
2024 filing · April 19, 2024
KLDiscovery at a glance
A legal technology business selling electronic discovery, data recovery and information governance services to law firms and companies.
The business
- Industry
- Business services
- Franchisor
- KLDiscovery Franchising, LLC
- The company that sells the franchises
- Franchisor based in
- Eden Prairie, Minnesota
What you pay
- Cost to open
- $118K–$163K
- Fee, build-out and opening working capital
- Franchise fee
- $50,000
- Paid once, when you sign
- Royalty
- 8% + 5%
- 8% of gross revenue a month, plus a 5% administrative services fee
- Brand fund
- None now
- No brand fund
- Agreement length
- 5 years
- Territory
- None
- No exclusive territory
- Franchisor financing
- None offered
Where it is
- US locations, 2023
- 0
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 0
- Change in 3 years
- 0
- Franchised locations, 2021–2023
From KLDiscovery Franchising, LLC’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
KLDiscovery among all franchises with the same figure.
| Figure | KLDiscovery | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $140,540 | Costs less than 79% of franchises |
| Franchise feePaid once, when you sign | $50,000 | Higher than 70% of franchises |
| RoyaltyShare of sales paid to the franchisor | 8% | Higher than 85% of brands with a set rate |
| US locationsFranchised and company-owned | 0 | Fewer than 97% of franchises |
How much a KLDiscovery franchise costs
Opening one KLDiscovery costs an estimated $118,315 to $162,765. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are initial franchise fee ($50,000) and additional funds – 3 months ($40,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $50,000 | ||
| Lease/Rent and Deposit | $0 | $4,000 | |
| Office furniture | $0 | $1,000 | |
| Office equipment & supplies | $100 | $150 | |
| Technology System Hardware and Pre-Installed Software | $3,000 | $4,000 | |
| Technology System Additional Software | $315 | ||
| Business Licenses and Permits | $250 | $1,500 | |
| Insurance | $9,500 | $35,000 | |
| Initial Marketing Expenses | $10,000 | $15,000 | |
| Costs and Expenses for Initial Training Program | $0 | $3,000 | |
| Internet Connection | $150 | $300 | |
| Membership and Association Dues | $0 | $1,000 | |
| Professional Fees | $5,000 | $7,500 | |
| Additional Funds – 3 Months | $40,000 | ||
| Total | $118,315 | $162,765 | |
Source: KLDiscovery Franchising, LLC, 2024 filing, page 16
KLDiscovery franchise fee
The franchise fee is $50,000. You pay it when you sign the franchise agreement.
Source: KLDiscovery Franchising, LLC, 2024 filing, page 11
Royalty and ongoing fees
| Royalty | 8% of gross revenue a month, plus a 5% administrative services fee. |
|---|---|
| Brand or marketing fund | No brand fund |
| Transfer Fee | 75% of then-current Initial Franchise Fee |
| Additional or Ongoing Training | $1,250 per day |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: KLDiscovery Franchising, LLC, 2024 filing, pages 12 and 26
Other fees as filed, from pages 12–13. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures KLDiscovery does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: KLDiscovery Franchising, LLC, 2024 filing, page 41
How KLDiscovery compares
Of the 324 business services franchises on this site, KLDiscovery is the 232nd cheapest to open and the 292nd largest by number of locations.
| Figure | KLDiscovery | Typical business services brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $118K | $77K | $222K |
| Cost to open, high end | $163K | $136K | $477K |
| Franchise fee | $50K | $45K | $40K |
| Royalty | 8% | 7% | 6% |
| US locations | 0 | 32 | 21 |
| Shares earnings figures | No | 187 of 324 | 2,147 of 3,352 |
Typical is the median across the 324 brands in business services franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 0 (0) | 0 | 0 | 0 |
| 2022 | 0 (0) | 0 | 0 | 0 |
| 2023 | 0 (0) | 0 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Source: KLDiscovery Franchising, LLC, 2024 filing, page 41
Who owns KLDiscovery?
KLDiscovery franchises are sold by KLDiscovery Franchising, LLC.
From KLDiscovery Franchising, LLC’s 2024 filing.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: KLDiscovery Franchising, LLC, 2024 filing, litigation on page 11, bankruptcy on page 11
KLDiscovery filings
The figures on this page come from KLDiscovery Franchising, LLC’s 2024 filing, issued April 19, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | April 19, 2024 | NASAA depository | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
