Club CatFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A CLUB CAT franchise requires a total initial investment of $303K – $439K, including a $35K franchise fee and an ongoing 6.0% royalty[2]. Per the 2024 FDD, average unit revenue was $385K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $303K – $439K
- 18th pct Lodging
- Avg gross sales
- $385K
- 0th pct Lodging
- Royalty
- 6.0%
- 39th pct Lodging
- Units
- 1
- 7th pct Lodging
- SBA default
- N/A
Quick verdict · Lodging · color = vs category peers
Green = >15% above Lodging 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 2023. Newer systems carry more uncertainty but may offer better territories.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $303K – $439K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $385K/year.
- Verdict A (Top Quintile) with a risk score of 47/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Club Cat Franchising, LLC
- Predecessor
- or parent company
- Prior franchisor entity
- Incorporated in
- TX
- HQ
- 1360 Reynolds Avenue, #120, Irvine, California 92614
- Auditor
- A+G LLP
- Audited financials
- ⚠ Going-concern note
- Disclosed in FDD 2024
- Status as of 2024; may have been resolved in a later filing we don't yet have.
Affiliated brands
- Club Cat
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Club Cat appears to be a cat-themed entertainment or retail venue (likely cat cafe, grooming, or interaction space). Franchisees manage daily operations including customer service, animal care/welfare, facility maintenance, and local marketing to drive foot traffic and memberships or retail sales.
- CEO
- Shana Martin
- Headquarters
- CA
- Founded
- 2023
- FDD year
- 2024
- States available
- 1
FDD Item 7 · 2024 filing · 18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $35K | $35K | |
| Leasehold improvements | $196K | $304K | |
| Lease deposit and first month's rent | $4K | $10K | |
| Artwork decor | $7K | $9K | |
| Furniture | $5K | $7K | |
| Boarding equipment | $3K | $4K | |
| Operating equipment | $4K | $5K | |
| Technology | $5K | $7K | |
| Signage | $500 | $3K | |
| Initial supplies and inventory | $3K | $3K | |
| Legal fees | $4K | $5K | |
| Travel, lodging and meals for initial training | $1K | $8K | |
| Business licenses, permits, etc. (for first year) | $300 | $500 | |
| Utility deposits and expenses for 3 months | $3K | $5K | |
| Insurance (for first three months) | $860 | $1K | |
| Grand opening advertising | $2K | $4K | |
| Additional working capital funds - 3 months | $30K | $30K | |
| Development Feenot refundable | $65K | $65K | |
| Total initial investment | $368K | $504K |
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.
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
$54K
14.0% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
7.4 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $303K – $439K
- Better than avg vs category
- Liquid capital req'd
- $30K – $30K
- Better than avg vs category
- Franchise fee
- $20K – $35K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 0.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 0.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $385K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Affiliate-owned unit
- Sample size
- 1 units
- vs category median 100 · small
- Transparency
- 7 / 5
- vs category median 0 / 5 · above
Compared against 245 Lodging brands
vs Lodging averages
How Club Cat Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 6 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
Early-stage cat-themed franchise with minimal operating history (1 unit), unverified financial claims, and high capital requirement creates meaningful validation and scaling risk.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $35,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · A+G LLP⚠ Going-concern note flagged
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 47 / 100 rating
- 01MINORSingle operating unit with unknown growth trajectory limits system validation and suggests early-stage or stalled expansion
- 02MEDNo Item 19 financial performance representation disclosed — cannot independently verify the $385,216 average revenue claim
- 03MEDHigh initial investment ($302k–$439k) relative to single-unit sample creates concentration risk with limited comparable data
- 04MED6% royalty on gross revenue (not net) is standard but punitive if revenue doesn't convert to profit; net margins appear ~35% leaving limited cushion
- 05MINOR10-year term lock-in is lengthy given franchise system maturity uncertainty and single-unit operating history
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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Household count radius |
| Protected territory | Yes |
| Territory sizeℹ | 600,000 households |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 40 hrs
- Training location
- On-site and off-site
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
13 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
CLUB CAT · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a CLUB CAT franchise?
The total investment to open a CLUB CAT franchise ranges from $303K – $439K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do CLUB CAT franchise owners earn?
According to Item 19 of the CLUB CAT FDD, the average gross sales per unit is $385K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is CLUB CAT's franchise failure rate?
SBA 7(a) loan charge-off data is not available for CLUB CAT (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 CLUB CAT franchise locations are there?
As of their most recent FDD filing, CLUB CAT has 1 total units in the United States, including 1 franchised units and 1 company-owned units.
Is CLUB CAT a good franchise to buy?
FranchiseVerdict rates CLUB CAT as a A-grade franchise with a risk score of 47 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.