Risk Score
Pending analysis
Investment Range
$78,300 - $1,496,895
Franchise Fee
$12,500
Total US Locations
5
Business Summary
Legato Living offers residential, home-based assisted living facilities that provide physical and emotional care, including medication administration and health monitoring, for individuals primarily suffering from memory impairment. Legato Living Homes operate from a single fixed location and offer a range of approved services and products.
Corporate History
Legato Living Franchising, LLC was established on January 22, 2021, as a Nebraska limited liability company. Legato Living Franchising, LLC operates the Legato Living Home franchise system and began offering franchises on March 31, 2021. It does not have any predecessors or a parent company and focuses solely on franchising its residential home-based assisted living facilities.
Financial Overview
Investment Range
$78,300 - $1,496,895
Franchise Fee (Low)
$12,500
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$1,000
Equipment Costs (High)
$65,000
Working Capital
$77,600
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Legato Living Franchising, LLC's financial statements, as referenced in Item 21, raise questions about the franchisor's financial ability to provide services and support to its franchisees.
Financing Details
Legato Living Franchising, LLC does not offer any direct or indirect financing options. Legato Living Franchising, LLC also does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
5
Franchised Units
5
Corporate Units
0
Avg Square Footage
4,650
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Legato Living Franchising, LLC has no litigation to report in Item 3 of its FDD.
Bankruptcy History
Legato Living Franchising, LLC has no bankruptcy history to report in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Legato Living franchisees must be in full compliance with their current Franchise Agreement and all related agreements, including the Franchise Owner and Spouse Agreement and Guaranty. They need to provide a 180-day written notice of their intent to renew. Franchisees must also pay a renewal fee, sign Legato Living's then-current Franchise Agreement and any related agreements, and provide a general release in favor of Legato Living Franchising, LLC. Additionally, franchisees are required to remodel and upgrade their Home to meet Legato Living's current standards and secure the legal right to continue occupying their Home location. Franchisee owners must personally guarantee the terms of the new renewal Franchise Agreement, which may have different terms from the original agreement.
Training & Support Program
Franchisor Assistance
Legato Living Franchising, LLC offers various forms of support to its franchisees. Before opening, franchisees receive the right to operate a Home within a designated territory, access to confidential manuals, and assistance with site review and approval. Legato Living Franchising, LLC provides lists of approved suppliers, equipment, and signage. Franchisees are also identified on Legato Living Franchising, LLC's website and receive initial training for themselves or their managing owner and one manager. After opening, Legato Living Franchising, LLC may require or offer supplemental training, initial training for replacement operating managers, and provides ongoing communication regarding operating standards, marketing standards, and approved vendors. Legato Living Franchising, LLC also coordinates an annual system conference and administers system-wide marketing funds.
Initial Training Hours
82
Training Location
Omaha, Nebraska
Ongoing Support
After opening, Legato Living Franchising, LLC may require franchisees and their operating managers to participate in supplemental on-site training for an additional fee. Legato Living Franchising, LLC also offers initial training for replacement operating managers, with a fee. Legato Living Franchising, LLC establishes and updates operating standards, procedures, and system requirements, including Approved Services and Products, System Supplies, and marketing standards. Legato Living Franchising, LLC provides a list of approved vendors and suppliers and may coordinate an annual system conference for franchisees. Legato Living Franchising, LLC administers system-wide marketing funds and may suggest pricing levels for services.
Franchise Requirements
Ideal Candidate Profile
Legato Living Franchising, LLC seeks franchisees where the designated managing owner will be personally responsible for the overall management and supervision of their Home. This managing owner must complete initial training and be approved by Legato Living Franchising, LLC. While hands-on participation in day-to-day operations is recommended, franchisees may hire an approved operating manager who meets specific criteria, completes training, and signs a confidentiality agreement to handle on-site supervision. All owners and their spouses must also personally guarantee the franchisee's obligations.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
Legato Living Franchising, LLC generally defines the Designated Territory as the smaller of a 2-mile radius from the Home Location (travelable by road) or an area encompassing a population of 100,000 people as of the Franchise Agreement date.
Staffing Notes
Legato Living Franchising, LLC does not assist with hiring or training employees, with franchisees being solely responsible for managing and supervising their staff. Franchisees must ensure all employees wear approved System branded uniforms and adhere to System standards for preparing, maintaining, and serving Approved Services and Products. Depending on state laws, franchisees may be required to hire an administrator, which could be the franchisee, a registered nurse, or a third-party administrator.