The Happy Cat Hotel
Formerly known as Happy Cat Hotel & Spa
Bottom line
- Total investment $465K – $781K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $520K/year.
- Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 24 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 The Happy Cat Hotel unit return on the cash you put in?
Unlevered ROIC · per unit
14%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Happy Cat Hotel units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.1M
on $5.7M purchase
Total debt
$4.6M
SBA $2.9M + senior + seller note
Overview
About
The Happy Cat Hotel is a boarding and care facility for cats, where franchisees manage daily operations including animal intake, feeding, medical monitoring, environmental enrichment, and customer communication. Day-to-day responsibilities include staffing a facility with proper HVAC and sanitation, handling customer check-ins/check-outs, maintaining health records, and ensuring 24/7 animal welfare standards.
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 · 8 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
Minimal operational scale, undisclosed profitability, and absent earnings data create meaningful uncertainty around unit economics and franchisee ROI viability.
Score breakdown · what drove the 47 / 100 rating
- 01MEDNet income not disclosed in FDD — unable to validate profitability claims against $520K avg revenue
- 02MEDHigh initial investment ($464.5K–$781K) relative to disclosed average revenue ($520.5K) creates thin margin for error
- 03MINOROnly 7 units system-wide — extremely small franchise network limits data reliability and support infrastructure
- 04MINORNo Item 19 financial performance representation — franchisor provides no earnings claims or profit benchmarks
- 05MINORRapid unit growth rate (25% YoY) from tiny base may indicate aggressive expansion before system maturity
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
13 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Happy Cat Hotel · FDD (2026) PDF