Bottom line
- Total investment $83K – $124K including a $20K franchise fee, 6.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated STRONG with a risk score of 51/100. SBA loan default rate of 0.0% across 12 loans (below the industry average).
- System growing at 53.6% CAGR over 3 years with 106 total units — strong expansion trajectory.
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 Cruisin’ Tikis unit return on the cash you put in?
Unlevered ROIC · per unit
107%
Above typical band (30–60%)
Overview
About
Cruisin' Tikis franchisees operate tropical-themed bar and entertainment venues, likely serving alcohol and food with a casual atmosphere. Day-to-day operations include managing staff, inventory, POS systems, entertainment scheduling, customer service, and compliance with local alcohol licensing and health codes.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 17 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Regulatory history, missing financial disclosures, territorial vulnerability, and questionable corporate stability create meaningful investment risk despite modest growth trajectory.
Score breakdown · what drove the 51 / 100 rating
- 01MEDNo Item 19 (Average Revenue/Net Income) disclosed — impossible to validate ROI on $83K-$124K investment
- 02MINORRegulatory violation (Feb 2022 Consent Order) shows compliance lapses in franchise registration and disclosure
- 03MINORUnprotected territory creates direct competition risk from other franchisees and company-owned units
- 04HIGHGoing Concern = False suggests potential financial instability or disclosure issues at corporate level
- 05MED6% royalty on undisclosed revenue base makes profitability assessment impossible
- 06MINORModest unit growth (12.8% YoY) from low base (106 units) indicates immature/fragile system
- 07MINOR5-year term is relatively short; renewal risk unclear
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
33 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Cruisin’ Tikis · FDD (2024) PDF