FranchiseVerdict
Cloud 9 Foot Spa logo
FV-00569·MODERATEExcellent81

Cloud 9 Foot Spa

Health & Wellness - OtherFranchising since 2024Website
Investment
$262K – $525K
62nd pct Other
Avg revenue
63rd pct Other
Royalty
5.0%
6th pct Other
Units
8
34th pct Other
SBA default

Bottom line

  • Total investment $262K – $525K including a $40K franchise fee, 5.0% ongoing royalty.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated MODERATE with a risk score of 65/100.
  • Emerging franchise — only 2 years of franchising with 8 units. Early-stage systems carry higher risk but may offer better territory availability.

Item 1 · who you're contracting with

The Franchisor

Legal entity
CLOUD 9 FRANCHISE LLC
Parent company
The Phi Group Holdings LLC
Incorporated in
Delaware
HQ
18047 NE 68th Street, Suite B135, Redmond, Washington 98052
Auditor
DJJCPA, LLC
Audited financials
Franchisor revenue
$0
vs $96K prior year

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one Cloud 9 Foot Spa unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: personal services
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $262K–$525K
Working capital
$
FDD reports $58K–$72K

Unlevered ROIC · per unit

38%

In Yale's "attractive" band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$176K
EBITDA margin
23.5%
Total invested
$459K
Payback
31 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Cloud 9 Foot Spa franchisees operate foot reflexology and spa treatment centers offering services like foot massages, herbal soaks, and relaxation therapies. Day-to-day operations include scheduling client appointments, managing therapist staff, maintaining spa facilities and equipment, managing inventory of oils and supplies, and handling front-desk customer service and billing.

CEO
Sean Peng
Founded
2010
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$262K – $525K
All-in to open one unit
Liquid capital
$58K – $72K
Cash you must have on hand
Franchise fee
$40K
Royalty
5.0%
Gross Revenue · typical 6–8%
Ad fund
1.5%
typical 3–5%
Total fee load
6.5%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
8
Opened
1
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
7
Corporate units in the system
% franchised
13%
vs corporate-owned
2023
1+2
Franchised units
2024
0
Franchised units
2025
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 20 · 18 states with active franchisees

The Territory Map

Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 18 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

No SBA loan data available for this brand.

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

65
Risk · 0-100
MODERATE65 / 100

Cloud 9 Foot Spa presents material risk due to going concern status, tiny system size, absent financial disclosures, and inability to validate promised returns.

Score breakdown · what drove the 65 / 100 rating

  1. 01HIGHGoing Concern status is False — indicates potential financial instability or operational challenges at corporate level
  2. 02MINOROnly 8 units system-wide with unknown growth trajectory — suggests stagnant or declining franchise model
  3. 03MINORNo average revenue or net income disclosure (no Item 19) — impossible to validate ROI claims or unit economics
  4. 04MEDHigh investment range ($262K–$525K) with 5% royalty against undisclosed revenue makes payback period unknowable
  5. 05MINORSmall unit count limits peer validation and suggests weak market traction or recent setbacks
  6. 06MINOR10-year term locks franchisee into relationship with unstable franchisor

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Population
Protected territory
Yes
Initial term
10 years
Renewal term
7 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Delaware

Item 11

Training & Operations

Classroom training
25 hrs
On-the-job training
10 hrs
POS system
MyTime
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

18 numbers

Locked
(517) 373-••••
MI
(860) 240-••••
CT
(212) 416-••••
NY

One-time purchase · CSV download · Validation questions included

FDD download

Cloud 9 Foot Spa · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above