Except as specified by us in the Operations Manual, you may not develop, maintain or authorize any website, domain name, e-mail address, social media account, username, other online presence or presence on any electronic medium of any kind (an “Online Presence”) that mentions your Business, links to any System Website, or displays any of the Marks, or engages in any promotional or similar activities, 19 KLDiscovery Franchising, LLC 2024_10 Franchise Disclosure Document 1503.002.006/412930 whether directly or indirectly, through any Online Presence. You may, however, use the microsite website that is provided to you during the Term, as well as the e-mail address that is associated with your Business. You are prohibited from maintaining any business profiles or use of the Marks on any Online Presence (including Facebook®, LinkedIn®, YouTube®) without our prior written approval. Each telephone number, directory listing, e-mail address, and any other type of contact information used by or that identifies or is associated with your Business (each, a “Contact Identifier”) will be used solely to identify your Business in accordance with the Franchise Agreement. We may require you to obtain from us and use an email address associated with our registered domain name. If we require you to obtain and use such an email address, you must do so according to our then-current terms and conditions and System Standards. We will have unrestricted access to and sole ownership of all such email accounts, and all documents, data, materials, and messages shared from or by such accounts. We may deactivate any such account or limit your or your users’ access to it at any time.
From the filings
KLDiscovery
Professional servicesKLDiscovery, a Minnesota-headquartered professional services franchisor and part of KLDiscovery Holdings, reports zero currently franchised or company-owned units under its 2024 FDD, with one mapped operator in Wisconsin. Item 8 routes hardware, software and billing services exclusively through its affiliate KLD Ontrack, while QuickBooks is described as in use under Item 11 without being required. That Item 8 clause makes KLD Ontrack the effective technology gatekeeper for any vendor pitch.
For software vendors selling into US franchise brands.
Live signals
Ordinary royalty terms
8% component; full terms unconfirmed
Complete royalty terms are not confirmed for the selected filing.
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
Except as specified by us in the Operations Manual, you may not develop, maintain or authorize any website, domain name, e-mail address, social media account, username, other online presence or presence on any electronic medium of any kind (an “Online Presence”) that mentions your Business, links to any System Website, or displays any of the Marks, or engages in any promotional or similar activities, 19 KLDiscovery Franchising, LLC 2024_10 Franchise Disclosure Document 1503.002.006/412930 whether directly or indirectly, through any Online Presence. You may, however, use the microsite website that is provided to you during the Term, as well as the e-mail address that is associated with your Business. You are prohibited from maintaining any business profiles or use of the Marks on any Online Presence (including Facebook®, LinkedIn®, YouTube®) without our prior written approval. Each telephone number, directory listing, e-mail address, and any other type of contact information used by or that identifies or is associated with your Business (each, a “Contact Identifier”) will be used solely to identify your Business in accordance with the Franchise Agreement. We may require you to obtain from us and use an email address associated with our registered domain name. If we require you to obtain and use such an email address, you must do so according to our then-current terms and conditions and System Standards. We will have unrestricted access to and sole ownership of all such email accounts, and all documents, data, materials, and messages shared from or by such accounts. We may deactivate any such account or limit your or your users’ access to it at any time.
You must obtain and use all aspects of the Technology System, including the computer hardware, software, and technology services we periodically designate. Currently, the Technology System consists of: (a) a laptop, smart phone, monitor, docking station, computer mouse, and keyboard, which is purchased from and provided by us and/or our affiliates, and (b) certain software programs, some of which are pre- installed on the laptop that we provide to you. We may modify specifications for and components of the Technology System at any time during the Term, which will be reflected in the Operations Manual, and there are no limitations on our ability to do so. You are responsible for ensuring all required upgrades, patches, new releases or updates to any aspect of the Technology System are downloaded and implemented, and there are no contractual limitations on the frequency or any associated costs associated with this obligation (if any). You must implement our modifications for software patches or updates within 24 hours, 20 KLDiscovery Franchising, LLC 2024_10 Franchise Disclosure Document 1503.002.006/412930 or for hardware updates, within 10 business days, after you receive notice from us. We may periodically require you to purchase, lease, and/or license new or modified computer hardware and/or software and to obtain service and support for the Technology System. Currently, we estimate the Technology System to cost approximately $3,000 to $4,000, plus additional expenses related to acquiring and maintaining required software programs (including licenses for Microsoft Office and QuickBooks Essentials, which we estimate to be $50 and $55 per month, respectively). For the components of the Technology System that we provide to you, we will maintain and support them at no additional cost to you. However, for components of the Technology System that you obtain from unaffiliate third parties, and for the connectivity of the Technology System (such as, maintaining high-speed Internet connection), you will be solely responsible for maintaining, supporting, and upgrading those components. We estimate those costs to be $2,000 to $3,000 per year, which may vary depending on the vendor and the maintenance or support required.
Except as specified by us in the Operations Manual, you may not develop, maintain or authorize any website, domain name, e-mail address, social media account, username, other online presence or presence on any electronic medium of any kind (an “Online Presence”) that mentions your Business, links to any System Website, or displays any of the Marks, or engages in any promotional or similar activities, 19 KLDiscovery Franchising, LLC 2024_10 Franchise Disclosure Document 1503.002.006/412930 whether directly or indirectly, through any Online Presence. You may, however, use the microsite website that is provided to you during the Term, as well as the e-mail address that is associated with your Business. You are prohibited from maintaining any business profiles or use of the Marks on any Online Presence (including Facebook®, LinkedIn®, YouTube®) without our prior written approval. Each telephone number, directory listing, e-mail address, and any other type of contact information used by or that identifies or is associated with your Business (each, a “Contact Identifier”) will be used solely to identify your Business in accordance with the Franchise Agreement. We may require you to obtain from us and use an email address associated with our registered domain name. If we require you to obtain and use such an email address, you must do so according to our then-current terms and conditions and System Standards. We will have unrestricted access to and sole ownership of all such email accounts, and all documents, data, materials, and messages shared from or by such accounts. We may deactivate any such account or limit your or your users’ access to it at any time.
Franchisor behaviours
What the franchisor requires
22 requirements the franchisor states in this filing, each in its own words; 7 explicit no's; 5 questions the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesFranchise agreement
You are required to use a bookkeeping service, software, or 24 KLDiscovery Franchising, LLC 2024_10 FDD | Ex.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
Moreover, we may, as often as we deem appropriate (including on a daily basis), independently access the Technology System, and retrieve and retain all information relating to the operation of your Business.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
(b) by March 1 of each year, annual profit and loss and source and use of funds statements and a balance sheet for your Business as of the end of the prior calendar year; provided, however, we reserve the right to require you to submit such reports on a monthly basis showing your financial results for the preceding…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We may designate, approve, or develop standards and specifications for manufacturers, distributors and suppliers of products and services to your Business, which may be us or our affiliates (collectively, “suppliers”).
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
We may modify specifications for and components of the Technology System at any time during the Term, which will be reflected in the Operations Manual, and there are no limitations on our ability to do so.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
Neither we nor our affiliates derived any revenue from franchisees’ required purchases in fiscal year ended December 31, 2023.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
80Item 8
We estimate that 80% to 95% of your initial investment and 80% to 95% of your ongoing expenditures will require you to purchase products and services that will be restricted by us in some manner.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
Your request must include sufficient specifications and information about the proposed supplier, alongside the then-current fee for evaluation of an alternative supplier (currently estimated to be no more than $10,000 per request, plus reimbursement of our costs and expenses).
Can a franchisee propose a new supplier for the franchisor's approval?
YesFranchise agreement
If you would like to request our approval of a product or supplier that is not then approved, you must submit your request in writing before purchasing any items or services from that supplier.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Upon termination or expiration of this Agreement, you agree to transfer, assign, or otherwise convey to us full control of all Contact Identifiers and Online Presences (defined in Section 11.B) that you used to operate your Business or that displays any of the Marks or any reference to the System.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
You acknowledge and agree that all of Our PI and Confidential Information may not be shared with any third party of any kind without our express prior authorization.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
We may at any time during your business hours, and without prior notice to you, examine your and your Business’ bookkeeping and accounting records, sales and income tax records and returns, and other records.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
The Operations Manual may be added to, deleted from, changed, amended, revised, or otherwise modified from time to time, in our discretion, without limitation.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
if you operate your Business from a leased commercial space, you must obtain our approval of the location of such premises.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Except as specified by us in the Operations Manual, you may not develop, maintain or authorize any website, domain name, e-mail address, social media account, username, other online presence or presence on any electronic, virtual, or digital medium of any kind (an “Online Presence”) that mentions your Business, links…
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase the products and services we periodically designate only from the suppliers we prescribe and only on the terms and according to the specifications we approve.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase the products and services we periodically designate only from the suppliers we prescribe and only on the terms and according to the specifications we approve.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
A – Franchise Agreement 1503.002.006/412931 Business Account automatically for any or all amounts due under this Agreement by signing an Electronic Funds Transfer Authorization (the “EFT Authorization”), which is attached as Attachment C.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must obtain and use all aspects of the Technology System, including the computer hardware, software, and technology services we periodically designate.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
The Technology System may give us and our affiliates access to all information generated by the Technology System, including price maintenance and information relating to clients, financial and operating information, and key metric data for your Business, and there are no contractual limitations on our ability to…
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
If we determine that you or any PM(s) require refresher training during the Term, we may require such individuals to retake all or a portion of the Initial Training Program or the PM Training, respectively.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
Besides attending these training courses, programs, and events, we may also require you to attend an annual conference of franchise owners.
The filing answers no to 7 questions
- Is there a franchisee advisory council, association or committee?Item 11
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?Item 8
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
- Is a minimum grand opening advertising spend required?Item 11
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 11
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
- Does the franchisor require minimum staffing levels or specific roles?Franchise agreement
The vendor opportunity at KLDiscovery
The 2024 FDD reports zero franchised or company-owned units, alongside one mapped operator located in Wisconsin. Item 19 makes no financial performance representation.
Who controls software purchasing
Item 2 names CEO and President Chris Weiler, CFO Dawn Wilson, COO Danny Zambito, Chief Revenue Officer Krystina Jones and EVP of Global Sales and Marketing Oscar Vega. But Item 8, below, already routes hardware and software procurement through an affiliate, making that clause the effective technology gatekeeper regardless of who signs off internally.
Tech named in the FDD, and what is actually required
The filing describes QuickBooks as in use under Item 11 — an incumbent, not a contractual requirement. Facebook, LinkedIn and YouTube are named in the same item without a use obligation.
Procurement, renewals, and timing
Item 8 designates suppliers only, and its affiliate KLD Ontrack is the sole and exclusive provider of services, computer hardware (including smartphones), designated software, and billing and collections services. Franchisees may propose alternative suppliers for other items.
How to read the KLDiscovery FDD
The 2024 FDD was filed with state franchise regulators; the embedded viewer below carries the full text of Items 2, 8, 11, 17 and 19.
Talk to FranCloud for a ranked list of professional-services targets like KLDiscovery.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
KLDiscovery, answered from the filing
Read the filing itself
Read the original document for the filing figures and their terms, page by page. Buy the original PDF to download, search, and annotate it.
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Ownership
The portfolio behind KLDiscovery
Parent company: KLDiscovery Holdings, Inc..
Related Professional services brands
Primary franchise filings · updated September 2026. Read the original filing for definitions, conditions, and qualifications.