Cortz Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Cortz is a home services franchise that builds and resurfaces residential and commercial sport courts. Franchisees run local operations, managing design, installation crews, and court accounts.
FranchiseVerdict summary · 2026
A Cortz franchise requires a total initial investment of $103K – $203K, including a $50K franchise fee and an ongoing 6.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $103K – $203K
- 36th pct Home Services
- Avg gross sales
- N/A
- Royalty
- 6.0%
- 15th pct Home Services
- Units
- 3
- 9th pct Home Services
- SBA charge-off
- N/A
Quick verdict · Home Services · color = vs category peers
Green = favorable by >10% vs Home Services 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
- COSTTotal investment $103K – $203K including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSFigures from the audited financial statements of Cortz by FSP LLC (the franchisor) for the fiscal year ended December 31, 2024, with prior year December 31, 2023 comparative. Stated in whole US dollars (no scaling). Total Revenues of $100,000 consist entirely of Franchise fees; there is no other revenue. FY2023 revenue was $0 (entity had no operating revenue; balance sheet shows capital stock of $98,500 and PP&E only). Net loss of $(24,816) for 2024. Balance sheet reconciles: total assets $107,217 = total liabilities $33,533 + total equity $73,684. Single entity; no parent/guarantor statements presented. Audited by KMS Financial Consulting, Coral Springs, FL (report dated March 20, 2025).
- RISKVerdict D (Below average), verdict score 35/100 (higher is better).
- DATANo 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
Corporate structure & franchisor financials
- Legal entity
- CORTZ BY FSP, Inc.
- Parent company
- None
- CEO title
- Chief Executive Officer
- David Klembith
- CEO experience
- 27 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 2945 Bell Road, Auburn, CA 95603
- Auditor
- KMS Financial Consulting
- Audited financials
- Franchisor revenue
- $100K
- vs $0 prior year
Overview
About
- CEO
- David Klembith
- Headquarters
- CA
- Founded
- 2023
- FDD year
- 2025
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 32% below the typical home services franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $24K | $36K |
| Equipment, build-out, other | $29K | $117K |
| Total initial investment | $103K | $203K |
Source: Cortz 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
- $103K – $203K
- Top 40% of category vs category
- Liquid capital req'd
- $24K – $36K
- Middle of category vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 6.0%
- tiered · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $249 |
| Training fee | $5K |
| Transfer fee | $0 |
| Renewal fee | $5K |
| Inventory (initial) | $10K – $20K |
| Total fee load | 7.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Cortz did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Cortz unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
49%
Within the 30–60% "attractive franchise" band
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: 2025 FDD
Financial Performance
Figures from the audited financial statements of Cortz by FSP LLC (the franchisor) for the fiscal year ended December 31, 2024, with prior year December 31, 2023 comparative. Stated in whole US dollars (no scaling). Total Revenues of $100,000 consist entirely of Franchise fees; there is no other revenue. FY2023 revenue was $0 (entity had no operating revenue; balance sheet shows capital stock of $98,500 and PP&E only). Net loss of $(24,816) for 2024. Balance sheet reconciles: total assets $107,217 = total liabilities $33,533 + total equity $73,684. Single entity; no parent/guarantor statements presented. Audited by KMS Financial Consulting, Coral Springs, FL (report dated March 20, 2025).
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 7.0% — below the Home Services average of 8.9%.
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
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 Home Services averages
How Cortz Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 2
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 67%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 2
- 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 · 3 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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Cortz is a pre-revenue-stage franchise with minimal operating units, undisclosed unit economics, and franchisor going-concern issues — positioning franchisees as beta testers with substantial capital at risk.
Litigation (Item 3)
No litigation disclosed in Item 3.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KMS Financial Consulting
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 35 / 100 verdict
- 01MINOROnly 3 existing units — extremely small, nascent system with no proven scalability or track record
- 02MINORNo average revenue or net income disclosure — inability to assess unit economics or franchisee profitability
- 03HIGHGoing Concern status is FALSE — suggests potential financial instability at franchisor level
- 04MINORHigh initial investment ($103K-$203K) relative to system size creates disproportionate risk for early franchisees
- 05MEDNo disclosed unit growth trajectory — cannot determine if system is expanding, stagnant, or contracting
- 06MINORTiered royalty structure (6%→4%) indicates franchisor may be dependent on high-volume franchisees to succeed
- 07MINOR5-year term is relatively short; insufficient runway to recoup investment in emerging franchise
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 50 mi |
| Territory population | 1,000,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | California |
| Jury trial waiver | Yes |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 40 hrs
- Training location
- Meadow Vista, CA (corporate headquarters)
- Ongoing training
- Optional
- Field support
- 8 hrs/yr
- On-site visits per year
- Time to open
- 1 mo
- From signing to launch
- Site selection
- Franchisee
- Franchisor financing
- Not offered
- Item 10
- POS system
- Quick-Books Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Quick-Books Online
Item 20 · call current owners
Franchisee Contacts
4 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Cortz · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Cortz franchise?
The total investment to open a Cortz franchise ranges from $103K – $203K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Cortz franchise owners earn?
Cortz 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 Item 19 in the Cortz 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 Cortz FDD and qualifies whose outlets they describe.
What is Cortz's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Cortz (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 Cortz franchise locations are there?
As of their most recent FDD filing, Cortz has 3 total units in the United States, including 2 franchised units and 1 company-owned units. 2 new units were opened in the latest reporting year.
Is Cortz a good franchise to buy?
FranchiseVerdict rates Cortz as a D-grade franchise with a verdict score of 35 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 Cortz, you can request corrections or provide updated information.
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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.