CloudboundFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Cloudbound franchise requires a total initial investment of $1.8M – $3.6M, including a $60K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $1.8M – $3.6M
- 38th pct Recreation & …
- Avg gross sales
- N/A
- 23rd pct Recreation & …
- Royalty
- 6.0%
- 6th pct Recreation & …
- Units
- 0
- 0th pct Recreation & …
- SBA default
- N/A
Quick verdict · Recreation & Entertainment · color = vs category peers
Green = >15% above Recreation & Entertainment 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 2025. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $1.8M – $3.6M including a $60K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict A (Top Quintile) with a risk score of 50/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Cloudbound Franchise Group, LLC
- Parent company
- Cloudbound Holdings, LLC
- Ultimate parent
- Palladium Equity Partners IV LP
- Incorporated in
- DE
- HQ
- 86 N. University Avenue, Suite 350, Provo, Utah 84601
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Sky Zone Franchise Group
- Loscann Insurance Company
- Sky Zone
- House of Trix
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Cloudbound franchisees likely operate cloud infrastructure, managed services, or IT solutions businesses, providing customers with data management, migration, security, or compliance services. Day-to-day operations would involve client onboarding, technical service delivery, account management, and leveraging the franchisor's cloud technology platform or proprietary methodologies.
- CEO
- David Hoffmann
- Headquarters
- UT
- Founded
- 2025
- FDD year
- 2025
- States available
- 0
FDD Item 7 · 2025 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $60K | $60K | |
| Lease & Security Deposits | $0 | $120K | |
| Leasehold Improvements/Architect | $850K | $1.8M | |
| Signage | $30K | $101K | |
| Attractions | $350K | $730K | |
| Furniture/Fixtures | $80K | $170K | |
| Computer Equipment | $100K | $129K | |
| Equipment and Supplies | $100K | $141K | |
| Licenses, Dues, and Utility Deposits | $5K | $12K | |
| Inventory | $15K | $23K | |
| Travel Expenses/Pre-Opening Wages | $20K | $40K | |
| Professional Fees | $4K | $14K | |
| Insurance Premiums, Allocations and Other Insurance for first quarter of operations | $24K | $65K | |
| Additional Funds - Three Months | $137K | $197K | |
| Grand Opening Marketing Expense | $35K | $35K | |
| Site Development Fee | $5K | $5K | |
| Total initial investment | $1.8M | $3.6M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.8M – $3.6M
- Better than avg vs category
- Liquid capital req'd
- $137K – $197K
- Near category avg vs category
- Franchise fee
- $60K – $60K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Transfer fee | $50 |
| Renewal fee | $15K |
| Inventory (initial) | $15K – $23K |
| Total fee load | 9.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Recreation & Entertainment averages
How Cloudbound Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Company-owned
- 0
- Corporate units in the system
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 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
A pre-revenue franchise system with zero operating units, undisclosed financials, going concern status, and a $1.8M–$3.6M investment requirement presents extreme execution risk and unvalidated unit economics.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $1
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 50 / 100 rating
- 01HIGHGoing Concern status indicates financial viability questions at corporate level
- 02MINORZero existing franchise units — no operating track record or proof of concept in franchise model
- 03MEDFinancial performance metrics (revenue/net income) completely undisclosed — unable to validate ROI claims
- 04MEDExtremely high investment range ($1.8M–$3.6M) with no corresponding disclosed average unit economics
- 05MINORUnknown unit growth trajectory prevents assessment of system momentum or market demand
- 06MED6% royalty on undisclosed revenue streams creates hidden cost exposure
- 07HIGHNo litigation disclosed but Going Concern status suggests potential unresolved disputes or structural issues
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 | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | zip codes or metes and bounds |
| Protected territory | Yes |
| Territory population | 150,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Termination notice | 30 days |
| Termination groundsℹ | 3 |
| Curable defaultsℹ | 4 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Utah |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 26 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- POS system
- web-hosted point-of-sale platform application
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: web-hosted point-of-sale platform application
Item 20 · call current owners
Franchisee Contacts
25 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Cloudbound · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Cloudbound franchise?
The total investment to open a Cloudbound franchise ranges from $1.8M – $3.6M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Cloudbound franchise owners earn?
Cloudbound does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Cloudbound's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Cloudbound (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.
Is Cloudbound a good franchise to buy?
FranchiseVerdict rates Cloudbound as a A-grade franchise with a risk score of 50 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.
For franchisors
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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.