Club Z Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Club Z franchise requires a total initial investment of $41K – $57K, including a $20K – $40K franchise fee. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 15.8% charge-off rate across 28 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $41K – $57K
- 6th pct Education
- Avg gross sales
- N/A
- 45th pct Education
- Royalty
- N/A
- Units
- 319
- 68th pct Education
- SBA charge-off
- 15.8%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Education · color = vs category peers
Green = favorable by >10% vs Education avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $41K – $57K including a $20K franchise fee.
- Item 19 discloses average number of private students (52, 40, 20, 7 across four hours-worked tiers) and hourly tutor/client pay rates by education level (elementary/middle/high school/test prep) - not whole-unit gross sales or net income figures.
- Verdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 15.8% across 28 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- System contracting at -8.1% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Club Z!, Inc.
- CEO title
- Director and CEO
- Mark Lucas
- Incorporated in
- Florida
- HQ
- 15310 Amberly Drive, Suite 175, Tampa, Florida 33647
Overview
About
In-home tutoring services franchise; Area Director franchisees recruit qualified teachers to tutor children one-on-one in the child's home, grades pre-K to 12
- CEO
- Mark Lucas
- Headquarters
- Florida
- Founded
- 1995
- FDD year
- 2025
Can you afford it, and what does the money buy?
Entry cost runs 92% below the typical education franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $20K | $20K |
| Working capital (3–6 mo) | $4K | $6K |
| Equipment, build-out, other | $17K | $32K |
| Total initial investment | $41K | $57K |
Source: Club Z 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $41K – $57K
- Top 40% of category vs category
- Liquid capital req'd
- $4K – $6K
- Top 40% of category vs category
- Franchise fee
- $20K – $40K
- Top 40% of category vs category
- Royalty
- Greater of tiered Royalty/Support Fee (8% of monthly Gros…
- Ad fund
- 2.0%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty (flat) | $550/month minimum (or $50/month for expanded territory not applicable - see royalty_rate_text) |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $75 |
| Transfer fee | $2K |
| Renewal fee | $250 |
What do units actually make?
Source: FDD 2025 · Item 19
Financial Performance
Item 19 discloses average number of private students (52, 40, 20, 7 across four hours-worked tiers) and hourly tutor/client pay rates by education level (elementary/middle/high school/test prep) - not whole-unit gross sales or net income figures.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Disclosure
Item 19 reports "non-financial (student counts + tutor/client hourly pay rates by hours-worked tier)" rather than annual gross sales. Not directly comparable across brands.
Operator retention
System contracting at -8.1% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Education averages
How Club Z Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 319
- Opened
- 16
- Last reporting year
- Closed
- 0
- Terminated
- 2
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.3%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +3.7%
- Net unit change over 3 years
- 3-yr CAGR
- -8.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 16
- Closed (3yr)
- 0
- Terminated (3yr)
- 2
- Non-renewed (3yr)
- 2
- Reacquired (3yr)
- 21
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 28
- Loan volume
- $1.6M
- Median loan
- $40K
- 50th percentile
- Charge-off rate
- 15.8%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 84.2%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 19
- Defaults
- 3
- Typical loan rate
- 7.4%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 6116
- Jobs supported
- 302
- 25.3 per loan
- Lender concentration
- 14%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Top lenders financing Club Z franchisees
Showing 3 of 19 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
No litigation disclosed.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 7 years |
|---|---|
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory population | 200,000 |
| 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 | 14 days |
| Transfer requires consent | Yes |
| Termination notice | 180 days |
| Mandatory arbitration | Yes |
| Arbitration location | American Arbitration Association office closest to franchisor's headquarters (Florida) |
| Governing law | Florida |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- Training location
- Tampa, Florida (corporate headquarters) or online; plus 10 hours web-based pre/post-training
- Ongoing training
- Optional
- Time to open
- 1 mo
- From signing to launch
- Site selection
- franchisee (home-based or optional commercial office; no site selection criteria/approval required)
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Club Z franchise?
The total investment to open a Club Z franchise ranges from $41K – $57K, with an initial franchise fee of $20K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Club Z franchise owners earn?
Club Z 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 Club Z's franchise failure rate?
Based on SBA 7(a) loan data, Club Z has a charge-off rate of 15.8% across 28 loans, meaning 15.8% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Club Z franchise locations are there?
As of their most recent FDD filing, Club Z has 319 total units in the United States, including 319 franchised units and 0 company-owned units. 16 new units were opened in the latest reporting year.
Is Club Z a good franchise to buy?
FranchiseVerdict rates Club Z as a B-grade franchise with a verdict score of 56 out of 100 (higher is better), 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
Are you the franchisor?
If you represent Club Z, you can request corrections or provide updated information.
Other Education franchises
Compare similar franchise opportunities in the Education category
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.