VR Business Sales Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$57,305 - $83,780
Franchise Fee
$45,500
Min Cash Required
$1,000
Total US Locations
32
Business Summary
VR® Offices operate as broker/intermediary offices that help facilitate the purchase and sale of businesses. These offices operate from an approved physical location and utilize the VR® Marketing System, which includes proprietary marks, intellectual property, and established processes to help franchisees compete effectively in the business sales market. In some states, VR® Offices may require their brokers to be licensed real estate agents.
Corporate History
King Lombardi Acquisitions, Inc. was incorporated in Delaware on May 17, 1999. The company began offering VR® franchises in June 1999. VR International Mergers & Acquisitions, Inc., an affiliate, owns one VR® Office in Wisconsin.
Financial Overview
Investment Range
$57,305 - $83,780
Franchise Fee (Low)
$45,500
Franchise Fee (High)
$45,500
Minimum Cash Required
$1,000
Royalty %
9%
Marketing %
5%
Equipment Costs (Low)
$2,000
Equipment Costs (High)
$5,000
Working Capital
$4,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
King Lombardi Acquisitions, Inc. shows a strong financial position with an unqualified audit opinion and substantial cash reserves. As of December 31, 2023, VR® had approximately $276,000 in bank deposits that exceeded the Federal Deposit Insurance Corporation's (FDIC) insurance limit of $250,000. If the associated bank were to become insolvent, King Lombardi Acquisitions, Inc. would face a risk for this excess cash balance. The auditors did not raise any going concern qualifications regarding VR®'s ability to continue operations.
Financing Details
King Lombardi Acquisitions, Inc. does not directly or indirectly offer any financing to its franchisees, nor does it guarantee any franchisee notes, leases, or other obligations. However, VR® can refer qualified candidates to an approved Small Business Administration (SBA) lender who may offer financing to cover operating capital, training costs, and initial franchise fees.
Performance Metrics
Total US Locations
32
Franchised Units
31
Corporate Units
1
Avg Square Footage
1,200
Franchising Since
1999
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
VR® had one litigation case disclosed in Item 3. In July 2023, VR® settled a dispute with the Commonwealth of Virginia State Corporation Commission. The dispute arose because VR® allowed an existing franchisee in Louisiana, who was impacted by a hurricane, to sell their franchise to a new owner in Virginia in 2021. VR® believed this transfer was exempt from registration, but the Virginia Commission asserted it was a violation of state law because VR® was not registered to sell franchises in Virginia at that time, and also violated a previous settlement order from 2008. To avoid a lengthy and costly legal battle, VR® settled without admitting or denying the allegations. The settlement required VR® to offer to rescind the Virginia franchisee's agreement, including a refund of the initial franchise fee, and to pay an $8,000 administrative fine. The Virginia franchisee refused the rescission offer and continues to operate their VR® Business.
Bankruptcy History
King Lombardi Acquisitions, Inc. has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
20 years
Renewal Term
20 years
Renewal Conditions
To renew their VR® franchise agreement, VR® franchisees must meet several conditions. These include not being in default of their franchise agreement or any other agreement with VR® or its affiliates. Franchisees must provide written notice of their intent to renew between 3 to 6 months before the current term expires. They are required to sign VR®'s then-current successor franchise agreement, which may have different terms, and must sign a general release of all claims against VR® and its affiliates. A successor franchise fee of $10,000 is required, but no initial franchise fee. Franchisees must also complete all required maintenance, refurbishing, renovating, and upgrading of their location to meet current VR® standards, and the continuation of the VR® Office business must not have been deemed unlawful by a regulatory body or court.
Training & Support Program
Franchisor Assistance
King Lombardi Acquisitions, Inc. provides extensive support to VR® franchisees, starting with initial training, which includes a virtual study program, webinar training, and in-person corporate training at headquarters. VR® also loans or provides access to its confidential operating manuals and offers advice and guidance on the business, including site selection (without guaranteeing suitability or profitability). Post-opening support includes general guidance based on franchisee reports and inspections, periodic additional training (which may be mandatory), control over e-commerce activities, and review of local advertising cooperatives. VR® makes modifications to marketing materials available and advises on new developments. Operational support is provided as long as franchisees comply with the agreement, and VR® licenses the use of its marks and intellectual property. Additional guidance can be furnished upon request, though excessive requests may incur fees. VR® also provides a 'Value Roll-out Program' with free materials, tools, and software like a branded website, white papers, valuation software, and marketing materials.
Initial Training Hours
236
Training Location
Franchisor headquarters in Fort Lauderdale, Florida; franchisee's location (virtual/webinar); or through video conference/pre-recorded presentations.
Ongoing Support
After opening, VR® franchisees receive ongoing guidance and operational support based on submitted reports and inspections, as well as adherence to the operating manuals. VR® controls and designates e-commerce activities and reviews policies for local advertising cooperatives. Franchisees gain access to modifications in marketing materials and advertising techniques developed by VR®, which may incur fees. VR® advises franchisees on new developments and techniques through phone and written communication. General operations support is provided as long as the franchisee complies with the agreement. Franchisees also have a license to use the VR® marks and intellectual property. Additional guidance is available upon request, though excessive requests may result in fees. VR® also offers mandatory training programs for all new VR® agents, and recommends attendance at annual conventions for continuing education, for which franchisees are responsible for travel and living expenses.
Franchise Requirements
Ideal Candidate Profile
VR® seeks franchisees who are prepared for an actively involved, non-passive investment. The ideal candidate, or their designated manager, must devote their full-time and best efforts to the day-to-day management and operation of the VR® Business. Success in the VR® system is highly dependent on the active involvement and efforts of the franchisee and their owners.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Exclusive
Territory Size Requirements
VR® provides franchisees with an exclusive territory, which is specifically defined in the Franchise Agreement's Schedule A. A standard VR® territory typically covers a 4-mile driving radius, equating to approximately a 50-square mile area, with the VR® Office centrally located within it. For Executive Offices or approved sites smaller than 1,200 square feet, the territory is generally a 2-mile driving radius, which is about a 12-square mile area, also with the office centrally located.
Staffing Notes
VR® franchisees are solely responsible for hiring, training, and supervising their staff, including employees and independent contractors, to meet anticipated business volume and System goals. Franchisees determine employment terms and compensation. Business broker representatives must be duly licensed if required by state law. VR® franchisees must conduct at least two sales representative training programs annually focusing on compliance with systems, laws, regulations, and ethical standards. All staff agreements must include confidentiality provisions for VR®'s proprietary information. Franchisees cannot recruit staff from other VR® businesses or from VR®'s own employees/vendors within one year of their departure. All new VR® agents must complete a mandatory agent training program provided by VR®.