Cloud 9 Foot SpaFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Cloud 9 Foot Spa franchise requires a total initial investment of $262K – $525K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $663K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $262K – $525K
- 51st pct Healthcare
- Avg gross sales
- $663K
- 19th pct Healthcare
- Royalty
- 5.0%
- 5th pct Healthcare
- Units
- 8
- 26th pct Healthcare
- SBA default
- N/A
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2024. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $262K – $525K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $663K/year.
- Verdict A (Top Quintile) with a risk score of 37/100.
- 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
- CEO title
- Founder and Owner
- Sean Peng
- CEO experience
- 14 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 18047 NE 68th Street, Suite B135, Redmond, Washington 98052
- Auditor
- DJJCPA, LLC
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
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
- Headquarters
- WA
- Founded
- 2010
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $58K | $72K |
| Equipment, build-out, other | $164K | $413K |
| Total initial investment | $262K | $525K |
Source: Cloud 9 Foot Spa 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$123K
18.5% margin
Unlevered ROIC
27%
EBITDA / total invested capital
Payback
3.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $262K – $525K
- Near category avg vs category
- Liquid capital req'd
- $58K – $72K
- Near category avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 1.5%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.5% of gross sales |
| Technology fee | $214 |
| Transfer fee | $23 |
| Renewal fee | $15 |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $663K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Historic Performance
- Sample size
- 8 units
- vs category median 12
- Range (low → high)
- $12K→$1.3M
- Cohort dispersion (min → max)
- Transparency
- 0 / 5
- vs category median 4 / 5 · below
Compared against 201 Healthcare brands
vs Healthcare averages
How Cloud 9 Foot Spa Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 8
- Opened
- 1
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 7
- Corporate units in the system
- % franchised
- 13%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 5
- Franchisor's next-year forecast
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).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Cloud 9 Foot Spa presents material risk due to going concern status, tiny system size, absent financial disclosures, and inability to validate promised returns.
Litigation (Item 3)
No litigation is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DJJCPA, LLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 37 / 100 rating
- 01HIGHGoing Concern status is False — indicates potential financial instability or operational challenges at corporate level
- 02MINOROnly 8 units system-wide with unknown growth trajectory — suggests stagnant or declining franchise model
- 03MINORNo average revenue or net income disclosure (no Item 19) — impossible to validate ROI claims or unit economics
- 04MEDHigh investment range ($262K–$525K) with 5% royalty against undisclosed revenue makes payback period unknowable
- 05MINORSmall unit count limits peer validation and suggests weak market traction or recent setbacks
- 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
| Initial term | 10 years |
|---|---|
| Renewal term | 7 years |
| Allowed renewalsℹ | 2 |
| Territory type | Population |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 30,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 5 days |
| Mandatory arbitration | Yes |
| Arbitration location | King County, Washington |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 25 hrs
- On-the-job training
- 10 hrs
- Training location
- franchisor headquarters and/or affiliate-owned outlet
- Ongoing training
- Required
- Field support
- 24 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
- POS system
- MyTime
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: MyTime
Item 20 · call current owners
Franchisee Contacts
18 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Cloud 9 Foot Spa · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Cloud 9 Foot Spa franchise?
The total investment to open a Cloud 9 Foot Spa franchise ranges from $262K – $525K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Cloud 9 Foot Spa franchise owners earn?
According to Item 19 of the Cloud 9 Foot Spa FDD, the average gross sales per unit is $663K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Cloud 9 Foot Spa's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Cloud 9 Foot Spa (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Cloud 9 Foot Spa franchise locations are there?
As of their most recent FDD filing, Cloud 9 Foot Spa has 8 total units in the United States, including 1 franchised units and 7 company-owned units. 1 new units were opened in the latest reporting year.
Is Cloud 9 Foot Spa a good franchise to buy?
FranchiseVerdict rates Cloud 9 Foot Spa as a A-grade franchise with a risk score of 37 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.