Bottom line
- Total investment $1.5M – $3.6M including a $50K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $1.6M/year (median $1.4M). Estimated payback in 11.5 years.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- System growing at 100.0% CAGR over 3 years with 40 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 K9 Resorts unit return on the cash you put in?
Unlevered ROIC · per unit
10%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 K9 Resorts units return on equity?
Equity IRR · 5-yr
33.2%
4.20× MOIC
Year-1 DSCR
2.43×
EBITDA ÷ debt service
Equity required
$6.0M
on $15.7M purchase
Total debt
$9.7M
SBA $5.0M + senior + seller note
Overview
About
K9 Resorts franchisees operate premium pet boarding and daycare facilities, managing daily dog care operations including overnight accommodations, grooming, training, and socialization services. Franchisees oversee staffing, facility maintenance, customer service, and handle pricing within franchisor guidelines while paying 7% of gross revenues in royalties.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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
K9 Resorts presents caution-level risk due to rapid expansion without financial transparency, litigation history, and aggressive capital requirements relative to reported profitability.
Score breakdown · what drove the 57 / 100 rating
- 01MINORAggressive unit growth (41.7% YoY) suggests rapid expansion that may outpace quality control and franchisee support infrastructure
- 02HIGHLitigation history with breach of contract and conversion allegations indicates potential franchisor-franchisee relationship issues despite settlement
- 03MINORNo Item 19 (Financial Performance Representations) available, making it impossible to validate the $221,590 average net income claim independently
- 04MINORHigh initial investment range ($1.48M–$3.6M) combined with 7% royalty creates significant breakeven threshold requiring strong per-location performance
- 05MEDMargin compression risk: Average net income of $221,590 on $1.57M revenue (14.1% net margin) leaves limited buffer for underperforming locations
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
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
K9 Resorts · FDD (2025) PDF