Risk Score
Pending analysis
Investment Range
$89,850 - $113,000
Franchise Fee
$35,000
Min Cash Required
$6,000
Total US Locations
15
Business Summary
Valenta operates a business that offers staff augmentation, consulting, and digital transformation solutions to other businesses. It provides various services and products and can be managed as a home-based business.
Corporate History
Valenta Franchise, LLC was established as a Delaware limited liability company on July 17, 2018. The company operates the Valenta franchise system, offering businesses that provide staff augmentation, consulting, and digital transformation solutions. Valenta Franchise, LLC began offering individual unit franchises on September 10, 2018, and later started offering Area Representative franchises under a separate disclosure document in 2020. Valenta Franchise, LLC does not have any predecessors and does not operate any company-owned Valenta businesses of the type offered to franchisees.
Financial Overview
Investment Range
$89,850 - $113,000
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$65,000
Minimum Cash Required
$6,000
Equipment Costs (Low)
$500
Equipment Costs (High)
$3,000
Working Capital
$12,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Special Risks section of the FDD states that Valenta Franchise's financial condition, as reflected in its financial statements, calls into question its ability to provide services and support to franchisees. The company reported a negative members' equity (net worth) of $(438,227) in 2023 and $(208,044) in 2024. Additionally, Valenta Franchise experienced negative cash flow from its operating activities in both 2023 and 2024. The auditor noted that the company has extensive transactions and relationships with its affiliates, suggesting that the financial statements might not fully represent its operating results if it functioned independently. While the auditor evaluated whether there was substantial doubt about Valenta Franchise's ability to continue as a going concern, the final audit opinion itself was unqualified, meaning it did not explicitly modify the opinion due to a going concern issue.
Financing Details
Valenta Franchise does not offer any direct or indirect financing to its franchisees. Valenta Franchise also does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
15
Franchised Units
15
Corporate Units
0
Avg Square Footage
450
Franchising Since
2018
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Valenta Franchise is involved in one ongoing lawsuit. In December 2024, Valenta Franchise filed a complaint against Innerworks, LLC, Shanmugam Mukundan, and VaQya LLC. The lawsuit alleges breach of contract, trademark infringement, misappropriation of trade secrets, unfair competition, and conversion, stating that Innerworks, LLC unlawfully established a competitive business and misused Valenta Franchise's trademarks and trade secrets. Valenta Franchise is seeking injunctive relief and monetary damages. The defendants have not yet responded, and the case is in its early stages.
Bankruptcy History
Valenta Franchise has no bankruptcy history to report.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Valenta franchisees must be in full compliance with their Franchise Agreement and any related agreements. They need to provide 180 days of written notice before the current term expires, sign the then-current form of Valenta Franchise Agreement and any associated agreements for the renewal term, and provide a general release in favor of Valenta Franchise. Franchisees are also required to pay a renewal fee and upgrade their Valenta Business to meet the current standards. All owners must also comply with their agreements, including the Franchise Owner and Spouse Agreement and Guaranty, and personally guarantee the terms of the new renewal agreement, which may have different terms from their original agreement.
Training & Support Program
Franchisor Assistance
Valenta Franchise provides extensive support to its franchisees. Before opening, Valenta Franchise grants the right to operate, provides access to its online Operations Manual, supplies a list of approved vendors, identifies the franchisee's business on its website, and conducts an initial training program for the franchisee and one manager. Valenta Franchise also offers site selection guidelines for administrative offices. After opening, Valenta Franchise communicates operating standards, provides marketing standards and approval, maintains a list of approved vendors, and may coordinate an annual system conference. It can also provide supplemental training for a fee if requested or required and offers initial training for replacement managers, also for a fee. Valenta Franchise administers marketing funds (Brand Development Fund and/or Advertising Cooperative) and provides pricing structures and commission schedules. Additionally, Valenta Franchisees can earn supplemental commissions for assisting other franchisees with projects.
Initial Training Hours
126.5
Training Location
Online
Ongoing Support
Valenta Franchise provides ongoing support to its franchisees through various channels. This includes establishing and communicating operating standards, setting and approving marketing standards, and maintaining lists of approved vendors. Valenta Franchise may coordinate an annual system conference, and franchisees are expected to attend, paying an annual conference attendance fee. Supplemental training is available for a fee if requested or required. Valenta Franchise also manages and administers system-wide marketing funds, including a Brand Development Fund and potential Advertising Cooperatives. Franchisees receive ongoing information about pricing structures and commissions, and have the opportunity to earn supplemental commissions for assisting other franchisees. Valenta Franchise also designates and requires participation in customer review tracking and reputation management services.
Franchise Requirements
Ideal Candidate Profile
Valenta Franchise is looking for franchisees, or their Managing Owner if a corporate entity, who will be personally responsible for the daily management and supervision of the Valenta Business. The Managing Owner must successfully complete initial training and obtain all necessary licenses and permits for their operating territory. While day-to-day management can be delegated to an Operating Manager, this manager must also meet Valenta Franchise's standards, complete the initial training, and sign a confidentiality agreement. Franchisee owners and their spouses are required to personally guarantee all obligations under the franchise agreement.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Valenta Franchise territories typically cover a city, county, and/or surrounding metropolitan area. A base territory generally consists of a geographic area with at least 2,000 "Qualified Businesses," defined as businesses having a minimum of 10 employees. The number of Qualified Businesses is determined using platforms like SalesGenie. Valenta Franchise reserves the right to add additional franchisees within a territory if it contains over 2,000 Qualified Businesses, at a ratio of one franchisee per 2,000 Qualified Businesses.
Staffing Notes
Valenta Franchisees are solely responsible for hiring, managing, and supervising their own employees, and must ensure they comply with Valenta System standards. The franchisee or their designated Managing Owner must personally oversee daily operations. If an Operating Manager is hired, they must meet Valenta Franchise's standards, complete initial training, and sign a confidentiality agreement, although equity ownership is not required for managers. All employees and agents with access to confidential information must also sign a confidentiality agreement. To offer Digital Transformation services, the franchisee or their Managing Owner must complete specific training and obtain certification; otherwise, they must collaborate with a certified Managing Partner.