Club Z Franchise Cost & 2026 FDD Data
56/100
Second tier
56 this brand55 Education medianlikely 50–62: narrower with more SBA loans (high confidence)
Higher is better · an editorial assessment, not investment advice
#1,232 of 3,069 graded brands
Why a B: Helped by scale, legal record and transparency. Held back by unit growth. See all six factors
- Total investment
- $41K – $57K
- excl. real estate
- Avg gross sales
- partial, no system average
- SBA charge-off
- 15.8%
1 in 6 SBA 7(a) loans to Club Z owners charged off (3 of 19 resolved loans, approved in FY2007); Education median 11.9%.
Data from the FDD filing + SBA 7(a) records. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Club Z franchise requires a total initial investment of $41K – $57K, excluding real estate, including a $27K – $40K franchise fee. Once open, the ongoing royalty is 8.0%. This franchisor states the initial franchise fee as a rule rather than as one amount, so the figure shown is a single point from it and not what every franchisee pays. Item 5 states it as: Your initial franchise fee varies depending on the population of the territory as follows: Franchise Fee Population : $19,750 100,000 $27,250 150,000 $39,750 250,000. The 2026 FDD on file does not yield a unit-revenue figure we can publish. SBA 7(a) loans show a 15.8% charge-off rate on 19 resolved loans. Verdict grade: B (Second tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · SBA 7(a) loan records (FOIA) · What one unit could make and lose →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low (the current year's filing)
Evidence for the headline figures: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Education median
Top edge: green = better than the Education median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSItem 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.
- GROWTHIn the latest Item 20 year, the number of franchised outlets fell by 9 (16 opened, 25 left the franchised system, 21 of them bought back by the franchisor).
- DATAItem 19 reports a non-revenue operating metric rather than annual gross sales, so the figure is not directly comparable. Ask franchisees directly for full unit-level revenue.
AT STAKEOne unit at the Item 7 midpoint: $6K a year in payments on assumed SBA 7(a)-style terms.You put in about $10K of your own cash and personally guarantee a $39K loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (4)
- Net -9 franchised outlets in 2025 (Item 20, outlet counts). Ask owners why outlets closed.
- SBA 7(a) charge-off 15.8% on 19 resolved loans approved in FY2007, above the Education median of 11.9% (21 brands).
- The franchisor keeps the right to compete inside your territory (Item 12, territory).
- Item 15 (owner participation) requires the owner, or a principal the franchisor approves, to run the business day to day. Ask how much of the business that principal must own.
Checked and clear: no auditor doubt that the franchisor can keep operating, no lawsuit naming the franchisor in Item 3 and the full filing on file, and an Item 19 average from 319 units. Not on file here, so ask: jury-trial waiver and supplier rebates.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match, or the lenders already lending to this brand in the SBA section. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 74% below the Education median ($188K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
This franchisor states the initial franchise fee as a rule rather than as one amount, so the figure shown is a single point from it and not what every franchisee pays. Item 5 states it as: Your initial franchise fee varies depending on the population of the territory as follows: Franchise Fee Population : $19,750 100,000 $27,250 150,000 $39,750 250,000.
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Club Z!, Inc. (Item 1: 15310 Amberly Drive, Suite 175, Tampa, Florida 33647) and your lender what they require, and keep living costs for the first year outside the deal.
Full Item 7 breakdown9 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $27.3K | $39.8K | |
| Travel and Living Expenses during Training | $1K | $1.5K | |
| Miscellaneous Opening Costs | $500 | $500 | |
| Computer and other Equipment, Supplies | $550 | $1.2K | |
| Software, Business Telephone Number, Web Hosting and Email Account (5) (3 months) | $225 | $225 | |
| Club Z! Business Package (6) (3 months) | $750 | $750 | |
| Initial Launch Advertising (7) (4 months) | $6K | $6K | |
| Insurance | $700 | $1.5K | |
| Additional Funds (3 months) | $4K | $6K | |
| Total initial investment | $41K | $57K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. The total row is the total as printed in Item 7. Actual costs may fall outside this range depending on market and build-out scope.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| RoyaltyTiered by sales volume; paid monthly (Item 6). Minimum: $550/month minimum (or $50/month for expanded territory not applicable - see royalty_rate_text) | 8.0% of gross sales |
| Marketing / ad fundBrand-wide marketing pool. Greater of 2% of Gross Sales or $50/month minimum | 2.0% of gross sales |
| Technology fee$75/month for proprietary scheduling software, virtual business telephone number, Web Hosting, and email account | $75/month |
| Transfer fee | $2,000 |
| Renewal fee | $250 |
| Total fee loadabove the Education median of 9.0% (heavy) | 10.0% of sales |
What do units actually make?
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Club Z unit would ask of you, from the filing's Item 7 total and labeled assumptions.
How these figures are worked out
- Loan (assumption): 80% of the $49K Item 7 midpoint is a $39K loan, paid over 10 years at 10.5%: $6K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours. Club Z's past SBA 7(a) loans averaged 7.4% at approval; 7(a) rates move with the prime rate, so 10.5% is a current-rate assumption, not this brand's history.
What you put at risk
Your own cash in: about $10K Assumption (the part the loan does not cover of the $49K Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $39K.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
Item 19 of the Club Z FDD discloses figures for part of the system but no single average across all outlets. The return models need one gross sales figure to start from, plus the operating costs that turn gross sales into a profit. Enter your own and the calculator runs on your assumptions; nothing here is modelled until you do.
Returns model · one unit
What would one Club Z unit leave you each year after the loan payment?
Not disclosed in Item 19. Enter your own gross sales assumption
Gross sales, not profit: the costs below decide what is left.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
Illustrative category typicals, not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Item 7 midpoint of $41K to $57K
Item 7's $4K to $6K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies annual revenue, direct costs, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $39K at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD · filed by Club Z!, Inc.
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.
Percentile ranks within Education
Each rank is among the Education brands that report that figure (the count is under each bar).
vs Education medians
How Club Z compares
Category median of published Education brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
Club Z!, Inc.
Item 1 (the franchisor) · 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
Is the system healthy?
-28 franchised outlets over the two years to 2025 (347 to 319, -8.1% in total, -4.1% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 21
- Franchisor bought back
- Signed, not yet open
- 0
- Item 20 Table 5
- Projected new
- 53
- Franchisor's next-year forecast
Item 20 · franchised units at year end
Franchised units fell from 347 in 2023 to 319 in 2025
Axis does not start at zero.
Source and method
Item 20 (outlet counts) outlets · 10 states
Where current outlets are
States with at least one current outlet in the Item 20 list the franchisor prints. Former owners are not counted, and this is not a list of where the franchisor may sell new units.
Current outlets (count on the tile) · 9 states and DCNo current outlet
40 current outlets in 10 states, plus 3 with no US state or territory: the 43 on the owner list, of 319 franchised at year end (Item 20). 5 former owners (terminated, transferred, not renewed or otherwise left) listed separately.
Counts only, from the list the franchisor prints in Item 20. The contact details are for your own due diligence and are not shown here.
Government records
SBA loan data
Lenders charged off 15.8% of 19 resolved SBA 7(a) loans, above the 11.9% category median. 7(a) is the SBA's main small-business loan; a resolved loan was paid in full or charged off.
- Loans on file
- 28
- SBA 7(a) loans matched to this brand, incl. those still being repaid
- Loan volume
- $1.6M
- Average loan
- $59K
- loan volume divided by loans
- Charge-off rate
- 15.8%
- 3 of 19 resolved loans
- Paid in full
- 84.2%
- of resolved loans
- Recent-loan charge-off
- No recent loans
- no SBA 7(a) loan approved since FY2007
- Lenders
- 19
- Average interest rate
- 7.4%
- Jobs reported
- 302
- Lender concentration
- 14%
- top lender's share
Cumulative: every 7(a) loan matched to this brand in the SBA’s FOIA files, approved FY1991 onward. Historical lending data, not predictive of future performance. How SBA charge-off rates are calculated
Benchmark: the median Education brand charges off 11.9% (21 brands with a published rate, same cumulative window and source). This brand is 3.9 points above it.
Top lenders financing Club Z franchisees Each lender’s rate counts only its own resolved loans; a 0.0% often means few of that lender’s loans have been resolved, not that none will fail. A lender with fewer than 10 resolved loans reads “Too few”.
Showing 3 of 19 lenders. The full SBA lending report below lists the top 10 by loan count, with states and the yearly trend.
Explore lender portfolios on Bank Reports or regional data on State Reports.
What are the risks?
Main risk: a shrinking system. Franchised outlets fell from 347 to 319 over the two years to 2025.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade B: Second tier, 56/100 (category median 55); the full grade is at the top of the page.
How the grade is built
Why a B, factor by factor
- Financial health NeutralAudited financials; no going-concern doubt
- Unit economics NeutralNo Item 19 sales figure to set against the investment, so neutral
- Unit growth Weighs on it, weakest dimension-28 franchised outlets over the two years to 2025 (347 to 319, -8.1% in total, -4.1% a year compounded); turnover 7.8%
- Scale Helps319 franchised units; franchising since 1998
- Legal HelpsNo litigation naming the franchisor in Item 3
- Transparency HelpsItem 19 discloses financial performance; audited financials
- Adjustments after the six dimensions (-10 points)SBA loan record: the SBA charge-off rate (15.8% on 19 resolved loans approved in FY2007) is between 10% and 20%, a range the score counts against a brand, so it took 6 points off. The score uses fixed ranges, not the category median, so a rate below its category median can still cost points.Score limits: a ceiling the method sets for specific risks (such as a very high SBA charge-off rate, high turnover or an auditor's going-concern doubt) took 4 points off.
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
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
Ask what the franchisor earns on the supplies it sells you or the rebates it takes (Item 8).
- 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?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Protected territory | Yes |
|---|---|
| Exclusive territory | No |
| Territory population | 200,000 |
| Franchisor can compete | Yes |
| Who runs it (Item 15) | The owner, or a principal the franchisor approves, must run it |
| Non-compete (years) | 2 years |
| Right of first refusal | 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 |
Items 10 (financing), 11 (training and support)
Training and 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 (initial fees) & 11 (training and support)
Franchisor support
Item 20 (outlet counts) · call current owners
Franchisee contacts
Who can you call before you sign?
43 current outlets listed
Each record has a phone number. 45 of 48 also name a state. No franchisee names or cities. 48 records: 43 current outlets + 5 former owners (terminated, transferred, not renewed or otherwise left). From the filing's Item 20 (the outlet list); the FDD itself is the free source. Our list covers 43 of the 319 franchised outlets Item 20 counts at year end; the owner exhibit prints the rest without a usable phone number, or omits them.
For your own due-diligence calls only. Not for telemarketing, marketing lists, or automated or prerecorded calls or texts.
The list is not offered for this brand yet. The FDD's Item 20 exhibit lists the owners.
Frequently asked questions
How much does it cost to open a Club Z franchise?
Per the 2026 FDD, the total investment to open a Club Z franchise ranges from $41K to $57K, with an initial franchise fee of $27K – $40K. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. The filing says these totals do not include real estate.
What do Club Z franchise owners earn?
Item 19 of the Club Z FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Club Z?
Club Z is franchised by Club Z!, Inc. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Club Z FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Club Z FDD and qualifies whose outlets they describe.
What is Club Z's franchise failure rate?
There is no published franchise failure rate. What is measurable is Club Z's SBA charge-off rate: 15.8% on 19 resolved loans approved in FY2007. Put plainly: 1 in 6 SBA 7(a) loans to Club Z owners charged off (3 of 19 resolved loans, approved in FY2007). The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. A franchisee can repay and close, or default and keep trading.
How many Club Z franchise locations are there?
Per the 2026 FDD, Club Z has 319 franchised units and 0 company-owned (319 in all). In the latest year, the number of franchised outlets fell by 9 (16 opened, 25 left the franchised system, 21 of them bought back by the franchisor).
Is Club Z a good franchise to buy?
FranchiseVerdict gives Club Z a B Verdict grade (Second tier) with a verdict score of 56 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by scale (319 franchised units), legal record and transparency. Held back by unit growth (-28 franchised outlets over the two years to 2025: 347 to 319, -8.1% in total, -4.1% a year compounded). The “Why a B” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Education franchises
Similar investment first, then by grade
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.