ScorecardWorth It?HistoryDatabaseDistress Signals
TechnologyLimited DataItem 19: ✓ DisclosedHigh Confidence · 100/100FDD data: 2026 · Fresh

KLDiscovery Franchise Cost and Profit

FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for KLDiscovery using its latest 2026 FDD coverage.

Based on 2026 FDD · 15 filings in corpus · Latest FDD: 2026

FranchiseIQ Score
78
B
Moderate-Low Risk
Composite score from 3 risk dimensions. Click for breakdown ↓
Health Score
D
51/100
3/7 metrics · Medium confidence
Full analysis unlocks:
✓ Cash-on-Cash return
✓ Payback period
✓ SBA default rate
✓ Red flags assessment
✓ Comparable franchises
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Cost and profit at a glance

How much does a KLDiscovery franchise cost and make?

Based on FDDIQ's FDD corpus, a KLDiscovery franchise shows an estimated initial investment of $29K – $36K. Reported owner economics show $7K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.

Startup Cost
$29K – $36K
Total initial investment
Profit / Revenue
$7K
FDD Item 19 signal
Payback Signal
4.4 years
Modeled return metric
SBA Default Rate
No matched SBA history
Loan repayment history
Compare franchise costs →Estimate franchise ROI →Check SBA default rates →Browse Technology franchises →Compare similar franchises →

Quick fee read: $25K franchise fee · 11% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.

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The unlocked report ties this brand's FDD disclosures to SBA outcomes, Item 20 movement, fee load, missing-data labels, and buyer assumptions — so you can decide whether this is worth deeper diligence.

FDD disclosure qualitySBA default outcomesItem 20 unit movementFee/cost stressComparable brands
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KLDiscovery Franchise Analysis

KLDiscovery requires a total initial investment of $29K to $36K (midpoint approximately $33K), with an initial franchise fee of $25K. The ongoing fee burden is 11% (10% royalty plus 1% advertising fund). This is below the industry average of approximately 15.5%, leaving more margin for the operator.

According to Item 19 of the 2026 FDD, the median revenue for KLDiscovery locations is $53K. The implied franchisee EBITDA is approximately $7K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 22.7% with a payback period of approximately 4.4 years.

KLDiscovery operates approximately 115 franchised units. The brand is growing, with a 3.4% net unit increase year-over-year, indicating franchisee demand and system health.

Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.

Analysis based on 2026 FDD filing. FDDIQ Editorial Team · Methodology

Total Investment Range$29K – $36K
MinMid: $33KMax

Key Metrics

Franchise Fee
$25K
Royalty Rate
10%
Ad Fund Rate
1%
Total Burden
11.0%
Royalty + ad fund
Units (2023)
115
+4 vs prior yr
Net Unit Growth
↑ 3.4%
Year over year
Cash-on-Cash Return
22.7%
Annual estimated return
Payback Period
4.4 yrs
Break-even timeline
SBA Default Rate
~3–8%
Fewer than 50 loans on record
Median Revenue
$53K
Item 19 disclosed
Red Flags Assessment
MEDIUM: Royalty burden above 10%
MED ×1
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CoC ReturnPayback PeriodSBA Default RateMedian RevenueEbitda MarginRisk Score
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Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

KLDiscovery vs. Technology Average

MetricKLDiscoveryTechnology Avg
SBA Default Rate - 7.2%
Cash-on-Cash Return22.7%▲15.5%
Total Investment$33K$250K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

KLDiscovery Franchise FAQs

Common questions buyers ask about KLDiscovery, answered from FDD and SBA data.

How much does a KLDiscovery franchise cost?

The total initial investment for a KLDiscovery franchise ranges from $29K to $36K, according to their Franchise Disclosure Document.

What are KLDiscovery franchise royalty fees?

KLDiscovery charges a 10% royalty fee on gross sales.

What is the KLDiscovery franchise fee?

The initial franchise fee for KLDiscovery is $25,000.

How many KLDiscovery franchise locations are there?

There are approximately 115 KLDiscovery franchise locations as of 2023.

How much profit does a KLDiscovery franchise make?

The median revenue for a KLDiscovery franchise is $53K, with a cash-on-cash return of 22.7%, according to FDD Item 19 data.

What is the SBA loan default rate for KLDiscovery?

SBA loan default rate data for KLDiscovery is not currently available in the SBA database.

Is a KLDiscovery franchise worth it?

Whether a KLDiscovery franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.

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Questions to Ask Before You Sign

5 data-driven questions every KLDiscovery franchise buyer should ask.

  1. 1.What is KLDiscovery's SBA default rate compared to its competitors?Learn more →
  2. 2.Does KLDiscovery disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for KLDiscovery →Validation call guide →
Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.

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