Bottom line
- Total investment $303K – $439K including a $35K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $385K/year. Estimated payback in 2.7 years.
- Rated MODERATE with a risk score of 60/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
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 CLUB CAT unit return on the cash you put in?
Unlevered ROIC · per unit
13%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 CLUB CAT units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$539K
on $2.7M purchase
Total debt
$2.2M
SBA $1.3M + senior + seller note
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 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
Early-stage cat-themed franchise with minimal operating history (1 unit), unverified financial claims, and high capital requirement creates meaningful validation and scaling risk.
Score breakdown · what drove the 60 / 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
Item 11
Training & Operations
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
13 numbers
One-time purchase · CSV download · Validation questions included
FDD download
CLUB CAT · FDD (2024) PDF