KLDiscovery

KLDiscovery Franchise FDD, Costs & Fees (2025)

KLDiscovery provides eDiscovery and data recovery services, offering legal and technology solutions to support law firms and corporations in managing electronic data and litigation.

KLDiscovery is a global leader in technology-enabled services and software, specializing in eDiscovery, data management, and information governance. Founded in 2005 by Chris Weiler, the company is headquartered in Eden Prairie, Minnesota.

In May 2023, KLDiscovery launched its pioneering eDiscovery Franchise Program, the first of its kind in the industry. This initiative offers entrepreneurs and adjacent businesses a unique opportunity to enter the eDiscovery market by leveraging KLDiscovery’s proven business model and comprehensive technology stack.

Franchisees gain access to proprietary tools like the Nebula ecosystem, Relativity, and ReadySuite, enabling them to deliver end-to-end solutions for litigation support, regulatory compliance, and data recovery.

What sets KLDiscovery apart is its commitment to providing franchisees with a low-cost, scalable, and flexible business model. With no need for specialized equipment or real estate investments, franchisees can operate remotely or in-office, ensuring quick setup and operational efficiency.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $50,000
Lease/Rent and Deposit $0 - $4,000
Office furniture $0 - $1,000
Office equipment & supplies $100 - $150
Technology System Hardware and Pre-Installed Software $3,000 - $4,000
Technology System Additional Software $315
Business Licenses and Permits $250 - $1,500
Insurance $9,500 - $35,000
Initial Marketing Expenses $10,000 - $15,000
Costs and Expenses for Initial Training Program $0 - $3,000
Internet Connection $150 - $300
Membership and Association Dues $0 - $1,000
Professional Fees $5,000 - $7,500
Additional Funds – 3 Months $40,000
TOTAL $118,315 to $162,765
Type of Expenditure Amount
Initial Franchise Fee $50,000
Lease/Rent and Deposit $0 - $4,000
Office furniture $0 - $1,000
Office equipment & supplies $100 - $150
Technology System Hardware and Pre-Installed Software $3,000 - $4,000
Technology System Additional Software $315
Business Licenses and Permits $250 - $1,500
Insurance $9,500 - $35,000
Initial Marketing Expenses $10,000 - $15,000
Costs and Expenses for Initial Training Program $0 - $3,000
Internet Connection $150 - $300
Membership and Association Dues $0 - $1,000
Professional Fees $5,000 - $7,500
Additional Funds – 3 Months $40,000
TOTAL $118,315 to $162,765

Franchise Disclosure Document

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Competitors

Below are some of

KLDiscovery

key competitors in the

IT Support

sector.

Started franchising
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Franchise fee

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Royalty fee

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Revenue (AUV)

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Gross Profit

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Home-based

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Passive investment

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FDD
KLDiscovery
2023
0
+
n.a.
n.a.
$50,000
8.00%

$118,000

-

$163,000

n.a.

$0

Upgrade

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Upgrade
Upgrade
2006
34
+
13%
13%
$49,750
3.5% - 7%

$115,000

-

$173,000

Upgrade

n.a.

$275,000

71.1%

n.a.

Upgrade

17.9%

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
2005
311
+
17%
17%
$49,500
7.00%

$109,000

-

$145,000

Upgrade

n.a.

$1,002,000

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
No
Upgrade
No
No
Upgrade
No
1997
110
+
-18%
-18%
$20,000
$7,920 per year

$20,000

-

$45,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Yes
Upgrade
Yes
No
Upgrade
No
2019
10
+
25%
25%
$15,000
5% - 7%

$100,000

-

$125,000

Upgrade

n.a.

$0

n.a.

n.a.

Upgrade

n.a.

n.a.

Upgrade
Yes
Upgrade
Yes
Yes
Upgrade
Yes
1998
255
+
2%
2%
$54,950
6.00%

$102,000

-

$155,000

Upgrade

n.a.

$588,000

47.6%

n.a.

Upgrade

n.a.

n.a.

Upgrade
Yes
Upgrade
Yes
No
Upgrade
No

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Training

KLDiscovery provides structured training programs to ensure franchisees and their teams are properly prepared to operate their franchised business effectively. The key training offerings include:

  1. Initial Training Program: Conducted remotely or at a designated location, this 7-day program must be completed within 30 days of signing the Franchise Agreement. It covers essential operational knowledge and may be adjusted based on the experience level of attendees. While the training is free, attendees are responsible for related expenses like travel and lodging if conducted on-site.
  2. PM Training: Project Managers (PMs) must complete this specialized training before offering services. It is currently delivered remotely and may incur additional fees. If a PM is hired during operations, they must complete this program to the franchisor's satisfaction.
  3. Ongoing and Additional Training: KLDiscovery may require franchisees, Operating Principals, or PMs to attend annual conferences, regional sessions, or online events. If performance is inadequate, refresher training or full retraining may be mandated, and fees apply for such additional instruction.
  4. Initial Commencement Support: Optional but intensive remote training during the first 6–8 weeks after launch. It complements the initial training and aims to reinforce critical procedures. This support is provided at no additional cost if offered.

Territory Protection

KLDiscovery does not offer exclusive territorial rights to its franchisees. Franchisees may face competition from other KLDiscovery outlets, whether franchised or company-owned, as well as from other distribution channels controlled by the franchisor.

There are no guarantees of a minimum territorial boundary, and services may only be offered to clients located within the United States. Furthermore, KLDiscovery retains the right to sell its services through various means, including the Internet, telemarketing, and direct marketing channels.

Franchisees are not compensated for orders accepted from outside their local area. This approach allows KLDiscovery to maintain flexibility in market coverage and service delivery while limiting territorial assurances for individual franchisees.

Number of units

2024
Franchised units

0

0

0

Company-owned units

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0

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