Bottom line
- Total investment $504K – $902K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $817K/year (median $723K). Estimated payback in 2.6 years.
- Rated STRONG with a risk score of 54/100. SBA loan default rate of 0.0% across 5 loans (below the industry average).
- System growing at 19.0% CAGR over 3 years with 26 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 Nautical Boat Club unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Nautical Boat Club units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.5M
on $7.3M purchase
Total debt
$5.9M
SBA $3.7M + senior + seller note
Overview
About
Franchisees operate membership-based boat clubs offering shared access to recreational boats, watercraft, and marina facilities without individual ownership burden. Day-to-day operations include member onboarding, boat maintenance coordination, scheduling/reservations management, marina operations, and customer service—blending hospitality with asset-light recreational tourism.
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 12 · 6 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.
6
states with franchisees (per FDD Item 12)
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
Nautical Boat Club presents moderate-to-cautious risk: strong unit economics mask slow system growth, unverified financial claims, and high capital intensity in a discretionary consumer category.
Score breakdown · what drove the 54 / 100 rating
- 01MEDNo Item 19 financial performance representations disclosed — cannot independently verify the $816,515 average revenue claim
- 02MINORAnemic unit growth of 4.2% YoY on a 26-unit system suggests market saturation or recruitment challenges in a niche leisure category
- 03MINORHigh capital requirement ($503K-$902K) relative to net income ($269K average) creates 1.9-3.4 year payback window with execution risk
- 04MINORLeisure/discretionary spending category is economically cyclical and vulnerable to recession pressure on membership retention
- 05MINOR6% royalty on gross sales (not net) penalizes unprofitable locations and reduces franchisee flexibility during downturns
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
1 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Nautical Boat Club · FDD (2025) PDF