LeTip franchise
2022 filing · February 26, 2022Growing
LeTip at a glance
A business networking franchise that runs local LeTip chapters where members trade referrals. At the end of 2021 there were 57 LeTip locations in the US, 1 franchised and 56 company-owned, so most are run by the company itself.
The business
- Industry
- Business services
- Franchisor
- LeTip World Franchise, LLC
- The company that sells the franchises
- Franchisor based in
- Mesa, Arizona
What you pay
- Cost to open
- $48K–$65K
- Fee, build-out and opening working capital
- Franchise fee
- $40,000
- Paid once, when you sign
- Royalty
- 17%
- 17% of monthly gross revenues
- Brand fund
- 1%
- 1% of gross revenue
- Franchisor financing
- Some financing offered
Where it is
- US locations, 2021
- 57
- Franchised and company-owned
- Franchised
- 1
- Company-owned
- 56
- Change in 3 years
- +1
- Franchised locations, 2019–2021
- States
- 14
- Most in California, New Jersey and Illinois
Support and records
From LeTip World Franchise, LLC’s 2022 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
LeTip among all franchises with the same figure.
| Figure | LeTip | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $56,255 | Costs less than 96% of franchises |
| Franchise feePaid once, when you sign | $40,000 | Lower than 46% of franchises |
| RoyaltyShare of sales paid to the franchisor | 17% | Higher than 99% of brands with a set rate |
| US locationsFranchised and company-owned | 57 | More than 67% of franchises |
How much a LeTip franchise costs
Opening one LeTip costs an estimated $47,610 to $64,900. That covers the franchise fee and everything else needed to open, through the first months of working capital. It is one of the franchises under $50K.
The biggest costs are initial franchise fee ($40,000) and additional funds 7 (3 month period after opening) ($1,000 to $5,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $40,000 | ||
| Initial Training Fee | $1,000 | $2,000 | |
| Food, Lodging & Travel (1 to 2 people while training) | $2,000 | $4,000 | |
| Computer System | $0 | $2,500 | |
| Presentation Equipment (Optional) | $0 | $1,000 | |
| Initial Supply of Inventory | $2,000 | ||
| Home Office Supplies | $10 | $100 | |
| Initial Marketing | $600 | $1,800 | |
| Business Licenses & Other Prepaid Expenses | $500 | $1,000 | |
| Professional Fees | $0 | $4,000 | |
| Insurance (3-months’ premium) | $500 | $1,500 | |
| Additional Funds 7 (3 month period after opening) | $1,000 | $5,000 | |
| Total | $47,610 | $64,900 | |
Source: LeTip World Franchise, LLC, 2022 filing, page 12
LeTip franchise fee
The franchise fee is $40,000. You pay it when you sign the franchise agreement.
Source: LeTip World Franchise, LLC, 2022 filing, page 8
Royalty and ongoing fees
| Royalty | 17% of monthly gross revenues. |
|---|---|
| Brand or marketing fund | 1% of gross revenue. |
| Technology Fee | 2% of Gross Revenues 2 |
| Initial Training Fee | $1,000 to $2,000 |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: LeTip World Franchise, LLC, 2022 filing, page 9
Other fees as filed, from pages 9–12. The filing lists every fee, including late fees and audit costs.
Sales and earnings
No figures LeTip 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: LeTip World Franchise, LLC, 2022 filing, page 35
How LeTip compares
Of the 324 business services franchises on this site, LeTip is the 84th cheapest to open and the 112th largest by number of locations.
| Figure | LeTip | Typical business services brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $48K | $77K | $222K |
| Cost to open, high end | $65K | $136K | $477K |
| Franchise fee | $40K | $45K | $40K |
| Royalty | 17% | 7% | 6% |
| Brand fund | 1% | 2% | 2% |
| US locations | 57 | 32 | 21 |
| Closed or left per year | 0% | 6.9% | – |
| 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 |
|---|---|---|---|---|
| 2019 | 0 (0) | 55 | 0 | 0 |
| 2020 | 1 (+1) | 56 | +1 | 0 |
| 2021 | 1 (0) | 56 | 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: home-based franchises and franchise failure rates.
Source: LeTip World Franchise, LLC, 2022 filing, page 36
Where LeTip locations are
At the end of 2021, LeTip had locations in 15 states and territories. The most are in California, New Jersey and Illinois.
- California16
- New Jersey7
- Illinois5
- Pennsylvania5
- Arizona4
- Florida3
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| California | 0 | 16 | 16 |
| New Jersey | 0 | 7 | 7 |
| Illinois | 0 | 5 | 5 |
| Pennsylvania | 0 | 5 | 5 |
| Arizona | 0 | 4 | 4 |
| Florida | 0 | 3 | 3 |
| New York | 1 | 2 | 3 |
| Colorado | 0 | 2 | 2 |
| Maryland | 0 | 2 | 2 |
| Nevada | 0 | 2 | 2 |
All 15 states
| Oregon | 2 |
|---|---|
| Texas | 2 |
| Washington | 2 |
| District of Columbia | 1 |
| South Carolina | 1 |
Source: LeTip World Franchise, LLC, 2022 filing, page 36
Who owns LeTip?
LeTip franchises are sold by LeTip World Franchise, LLC.
From LeTip World Franchise, LLC’s 2022 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: LeTip World Franchise, LLC, 2022 filing, litigation on page 8, bankruptcy on page 8
LeTip filings
The figures on this page come from LeTip World Franchise, LLC’s 2022 filing, issued February 26, 2022, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2022 filing | February 26, 2022 | NASAA depository | Costs, fees and locations, 2019–2021 |
Each link opens the filing as a PDF. See the newest filings across all brands.
