From the filings
Software purchasing at LeTip is controlled from the headquarters in Arizona, where CEO Kim Marie Branch-Pettid and CFO/COO John Pokorney oversee operations. The franchise system is overwhelmingly company-owned (56 of 57 total units), with a mandated technology stack built on LeTip Wired and LeTip Wired Mobile. For software vendors, the addressable market is concentrated at the corporate level, not across a broad franchisee base.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
18%of gross sales (FY2022)
15% reference
Franchisor behaviours
20 requirements the franchisor states in this filing, each in its own words; 5 explicit no's; 9 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have independent unlimited access to this information and there are no contractual restrictions on our right to access this data.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Within 90 days after the end of each calendar year, you must prepare a balance sheet for your Business (as of the end of the calendar year) and an annual statement of profit and loss and source and application of funds.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We are currently the exclusive designated supplier for all of your inventory items (i.e., Franchisee Kits, New Member Kits and President’s Kits).
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
We may change the components of the Technology Systems from time to time, including your computer system.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We may receive rebates, payments or other material benefits from suppliers based on franchisee purchases and we have no obligation to pass them on to our franchisees or use them in any particular manner.
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?
90Item 8
We estimate that nearly 90% of the total purchases and leases that will be required to establish and operate your Business will consist of source restricted goods or services.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you want to purchase or lease a source restricted item from a non-approved supplier, you must send us a written request for approval and submit any additional information that we request.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
you hereby authorize the Agencies to transfer such telephone numbers, domain names and listings to us and you authorize us, and appoint us and any officer we designate as your attorney-in-fact to direct the Agencies to transfer the telephone numbers, domain names and listings to us if you fail or refuse to do so
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
To ensure compliance with this Agreement, we or our representatives will have the right to attend your chapter meetings, evaluate your operations and inspect or examine your books, records, accounts and business tax returns.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
We can modify the Manual at any time.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
We must approve the location of all venues where you hold chapter meetings.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
At this time, we do not allow our franchisees to maintain their own websites or market their businesses on the Internet (except through the webpage we provide and through approved social media channels).
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
We are currently the exclusive designated supplier for all of your inventory items (i.e., Franchisee Kits, New Member Kits and President’s Kits).
Must equipment be purchased from designated or approved suppliers?
YesItem 8
We require that you purchase or lease certain “source restricted” goods and services for the development and ongoing operation of your Business.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
You must complete and send us an ACH Authorization Form allowing us to electronically debit a banking account that you designate (your “Account”) for any fees or other amounts payable to us or our affiliate that we do not deduct from your revenues as described above.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must purchase and use all Technology Systems (as defined in Note 4 in Item 6) that we designate from time to time.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have independent unlimited access to this information and there are no contractual restrictions on our right to access this data.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesItem 8
Our affiliate, LeTip International, is currently the exclusive supplier for the CRM and invoicing system you must use
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 6
You must pay us a training fee of up to $1,000 per day for: (i) any remedial training that we require based on your operational deficiencies; and (ii) each person to whom we provide additional training or assistance that you request.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
Attendance at these conferences is mandatory.
LeTip presents a unique, compact target for software vendors. The system totals just 57 units, but 56 of those are company-owned. This means the addressable market is not a dispersed network of independent franchisees making their own tech decisions—it is a single corporate entity operating out of Arizona. For a vendor, the sales motion is closer to a direct enterprise deal than a franchise-wide rollout. The total unit count has not shown disclosed year-over-year growth in the most recent FDD, so the immediate opportunity is wallet share within the existing footprint rather than rapid expansion.
Average unit volume (AUV) is not disclosed in the 2022 FDD. Royalties run at 17.0%, and the initial franchise term is 5 years. With only one franchised location, the royalty structure is largely an internal transfer mechanism rather than a revenue stream from a broad franchisee base.
Decision-making authority sits squarely at headquarters. The FDD lists Kim Marie Branch-Pettid as Chief Executive Officer, President, and Partner, and John Pokorney as Chief Financial Officer, Chief Operating Officer, and Partner. These two executives represent the buying center for any technology vendor. Because the system is nearly entirely company-owned, there is no franchisee advisory council or multi-unit operator group to influence purchasing. A vendor’s pitch runs through the C-suite in Arizona.
No additional parent company is on file; LeTip appears independently owned. This keeps the org chart flat and the procurement path short.
Item 11 of the 2022 FDD mandates two systems: LeTip Wired and LeTip Wired Mobile. These are required for all locations. The filing does not name any other POS, CRM, scheduling, or operational platforms as mandated or recommended. For a software vendor, this means the existing stack is proprietary and tightly controlled. Any third-party tool would need to integrate with or replace components of the LeTip Wired ecosystem, and that decision would be made at the corporate level.
No Item 8 procurement extract is available in our corpus, so the formal supplier designation process—whether designated, approved, or open—is not publicly documented. Vendors should approach this as a closed, HQ-driven technology environment until they can confirm otherwise through direct engagement.
The franchise agreement runs for 5 years. Item 17 outlines renewal conditions: the franchisee must not be in default, must give timely notice, must sign the then-current form of agreement (which may have materially different terms), must sign a general release, and must pay the renewal fee. For the single franchised unit, this creates a potential re-evaluation window every five years. For the 56 company-owned locations, there is no franchise renewal cycle—technology changes are driven by internal corporate strategy and budgeting cycles, not contract expirations.
Because the system is so heavily company-owned, the concept of a “contract window” tied to franchise agreement lifecycles is largely irrelevant. The real trigger for software evaluation is a strategic initiative from the CEO or CFO/COO.
The 2022 Franchise Disclosure Document is the authoritative source for understanding LeTip’s technology mandates, procurement rules, and contractual terms. Item 11 details the required LeTip Wired platforms. Item 17 spells out renewal conditions and the potential for materially different contract terms upon renewal. The full document is embedded below for your review. For vendors building a ranked target list of franchise systems, understanding this level of detail across hundreds of brands is where FranCloud can help.
Questions vendors ask
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FDD alert
We’ll email you the moment LeTip files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
1 operators run 1 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| AZ | 1 |
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Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.