CortzFranchise Cost, Revenue & Review 2026
Data from FDD filing
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). Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $103K – $203K
- 35th pct Home Services
- Avg gross sales
- N/A
- 54th pct Home Services
- Royalty
- 6.0%
- 13th pct Home Services
- Units
- 3
- 9th pct Home Services
- SBA default
- N/A
Quick verdict · Home Services · color = vs category peers
Green = >15% above Home Services 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 2024. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $103K – $203K including a $50K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 57/100.
- No 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
- Legal entity
- CORTZ BY FSP, INC.
- 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
- $0
- Most recent fiscal year
Overview
About
Cortz franchisees appear to operate a beverage or food/beverage retail concept (brand name suggests specialty drinks). Day-to-day activities likely include customer service, product preparation, inventory management, and local marketing within a protected territory.
- CEO
- David Klembith
- Headquarters
- CA
- Founded
- 2023
- FDD year
- 2025
- States available
- 2
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
- Better than avg vs category
- Liquid capital req'd
- $24K – $36K
- Near category avg vs category
- Franchise fee
- $50K – $50K
- Near category avg vs category
- Royalty
- 6.0%
- percentage_of_gross · 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 | $3K |
| Transfer fee | $5K |
| Renewal fee | $5K |
| Total fee load | 7.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Home Services averages
How Cortz Compares
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
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 30 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
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 is required to be disclosed in this Item.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KMS Financial Consulting
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
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: No
Score breakdown · what drove the 57 / 100 rating
- 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Zip Codes, streets and other appropriate boundaries |
| 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 | California |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in this Item.
Items 10, 11
Training & Operations
- Classroom training
- 30 hrs
- On-the-job training
- 40 hrs
- Training location
- Meadow Vista, CA
- Ongoing training
- Required
- Field support
- 8 hrs/yr
- On-site visits per year
- Time to open
- 3 mo
- From signing to launch
- POS system
- Quick-Books Online
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Quick-Books Online
Item 20 · call current owners
Franchisee Contacts
31 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 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 B-grade franchise with a risk score of 57 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.