K9 Resorts Franchise Cost, Revenue & Review 2026
- Investment
- $2.3M – $3.6M
- Disclosed sales
- $1.6M
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
K9 Resorts is an upscale dog boarding and daycare franchise offering luxury accommodations, daycare, and grooming. Franchisees run the facilities, managing staff, pet care operations, and customer relationships.
FranchiseVerdict summary · 2026
A K9 Resorts franchise requires a total initial investment of $2.3M – $3.6M, including a $50K franchise fee and an ongoing 7.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.6M[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: partial✓ 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 scored6 of 6 headline figures on this page cite a page of the filing.
Overview
- Investment
- $2.3M – $3.6M
- 96th pct Pet Services
- Avg gross sales
- $1.6M
- 32nd pct Pet Services
- Royalty
- 7.0%
- 49th pct Pet Services
- Units
- 40
- 66th pct Pet Services
- SBA charge-off
- N/A
Quick verdict · Pet Services · color = vs category peers
Green = favorable by >10% vs Pet Services median · 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 $2.3M – $3.6M including a $50K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.6M/year.
- RISKVerdict C (Average), verdict score 41/100 (higher is better).
- GROWTHNegative, pipeline stalled: 2,022 agreements signed but not yet open against 40 open outlets (Item 20).
- GROWTHSystem growing at 100.0% CAGR over 3 years with 40 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- K-9 Franchising, LLC
- Parent company
- K-9 Holdings, LLC
- FDD Item 1, page 8 of the 2025 FDD
- Predecessor
- K-9 Resorts Franchising, LLC
- Prior franchisor entity
- CEO title
- Co-Founder and CEO
- Jason D. Parker
- Incorporated in
- NJ
- HQ
- 400 Connell Park Dr., Floor 5, Berkeley Heights, NJ 07922
- Auditor
- EisnerAmper LLP
- Audited financials
- Franchisor revenue
- $5.4M
- vs $4.0M prior year
Affiliated brands
- Our affiliate
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Jason D. Parker
- Headquarters
- NJ
- Founded
- 2016
- FDD year
- 2025
- States available
- 17
Can you afford it, and what does the money buy?
Entry cost runs 800% above the typical pet 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) | $105K | $129K |
| Equipment, build-out, other | $2.1M | $3.4M |
| Total initial investment | $2.3M | $3.6M |
Source: K9 Resorts 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
- $2.3M – $3.6M
- Bottom third — review vs category
- Liquid capital req'd
- $105K – $129K
- Bottom third — review vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 7.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $206 |
| Transfer fee | $25K |
| Renewal fee | $8K |
| Inventory (initial) | $17K – $21K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 161% above the pet services norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for K9 Resorts until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$3.1M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one K9 Resorts unit return on the cash you put in?
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.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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
- Avg gross sales
- $1.6M
- Per unit/yr · from the Item 19 franchised-cohort breakdown (no single system-wide average disclosed)
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenue and ebitda
- Sample size
- 17 outlets
- vs category median 12
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 69 Pet Services brands
Revenue is only 0.5x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.6M/year in gross sales. Revenue-to-investment ratio: 0.5x.
Fee burden
Total ongoing fee load of 8.0% (near the Pet Services median).
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 100.0% CAGR over 3 years across 40 units — operators are staying and new ones are joining.
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 Pet Services medians
How K9 Resorts Compares
Category median of published Pet Services 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.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 40
- Opened
- 10
- Last reporting year
- Closed
- 0
- Turnover rate
- N/A
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 85%
- vs corporate-owned
- Net growth (3-yr)
- +100.0%
- Net unit change over 3 years
- 3-yr CAGR
- +100.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 2,022
- 50.55 per open outlet · Item 20 Table 5
- Projected new
- 18
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 17 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
17
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
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
K9 Resorts presents caution-level risk due to rapid expansion without financial transparency, litigation history, and aggressive capital requirements relative to reported profitability.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Sonflower LLC et al. v. K9 Resorts Malvern LLC (E.D. Pa. 2021) - breach of management agreement; settled for $125,250
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · EisnerAmper LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor (K-9 Franchising, LLC) audited Statements of Operations FY2024 total revenues $5,375,673 (FY2023 $4,046,590), comprising franchise fees $1,310,025, franchise royalties $2,785,611, brand development/technology/other fees $792,943, real estate fees $88,500, and other revenues $398,594. Net loss FY2024 $(3,126,949). Audited by EisnerAmper LLP (Iselin, NJ), April 30, 2025. Balance sheet shows member's deficit of $(1,359,326), i.e. negative net worth.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 41 / 100 verdict
- 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
- 03MEDMargin 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
What are you signing up for?
Ongoing fees run about 8.0% 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 | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 4 mi |
| Territory population | 160,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 22 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Union County, New Jersey |
| Jury trial waiver | No |
| Governing law | NJ |
| Litigation count | 1 |
View Item 3 litigation summary
Sonflower LLC et al. v. K9 Resorts Malvern LLC (E.D. Pa. 2021) - breach of management agreement; settled for $125,250
Items 10, 11
Training & Operations
- Classroom training
- 25 hrs
- On-the-job training
- 50 hrs
- Training location
- K-9 Resort location in NJ and/or the Franchised Business location
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Gingr
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Gingr
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a K9 Resorts franchise?
The total investment to open a K9 Resorts franchise ranges from $2.3M – $3.6M, 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 K9 Resorts franchise owners earn?
According to Item 19 of the K9 Resorts FDD, the average gross sales per unit is $1.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns K9 Resorts?
K9 Resorts is franchised by K-9 Franchising, LLC. Its parent company is K-9 Holdings, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the K9 Resorts 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 K9 Resorts FDD and qualifies whose outlets they describe.
What is K9 Resorts's franchise failure rate?
SBA 7(a) loan charge-off data is not available for K9 Resorts (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 K9 Resorts franchise locations are there?
As of their most recent FDD filing, K9 Resorts has 40 total units in the United States, including 34 franchised units and 6 company-owned units. 10 new units were opened in the latest reporting year.
Is K9 Resorts a good franchise to buy?
FranchiseVerdict rates K9 Resorts as a C-grade franchise with a verdict score of 41 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.