Bottom line
- Total investment $53K – $105K including a $48K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $555K/year (median $514K).
- Rated STRONG with a risk score of 47/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- System growing at 27.8% CAGR over 3 years with 24 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 Tip Top K9 unit return on the cash you put in?
Unlevered ROIC · per unit
108%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Tip Top K9 units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $6.1M purchase
Total debt
$4.9M
SBA $3.1M + senior + seller note
Overview
About
Tip Top K9 franchisees operate dog training and daycare facilities, providing obedience training, behavioral modification, and pet boarding services. Daily operations include hands-on dog training instruction, client consultations, facility management, and staff supervision. Franchisees typically work as trainers and business managers, handling both service delivery and administrative functions.
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 · 10 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
Rapid growth, financial opacity, and high fee-to-revenue ratio create profitability uncertainty despite strong top-line revenue figures.
Score breakdown · what drove the 47 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents ROI validation despite $555K average revenue claims
- 02MINORAggressive unit growth of 43.8% YoY raises sustainability concerns — typical mature franchises grow 5-15% annually
- 03MINORHigh franchise fee ($48K) plus $53-105K total investment with 6% royalty creates breakeven pressure on $555K revenue
- 04MINORSmall franchise system (24 units) limits brand recognition and support infrastructure maturity
- 05MINORMinimum Performance Requirements (MPR) royalty structure suggests franchisor concerned about franchisee cash flow
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
14 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Tip Top K9 · FDD (2025) PDF