K9 Resorts franchise unit economics
K9 Resorts franchisees run luxury and boutique pet hotels that sell dog daycare and overnight boarding.
K9 Resorts franchise at a glance
Item 19 of the 2026 FDD reports 2025 results for the 17 franchised resorts open a full twelve months, sorted into five cohorts by age, and five years of results for the founder’s resort in Fanwood, New Jersey.
K9 Resorts franchisees averaged $2,466,623 of sales in 2025, with a median of $2,837,508, according to Item 19 of K9 Resorts’ 2026 FDD, issued 13 April 2026. The 17 in that group are 46%* of K9 Resorts’ 37 franchised resorts. Fees paid to K9 Resorts come to about 9.5%* of sales.
- A K9 Resorts Luxury Pet Hotel costs $2,357,802 to $3,949,331 to open, including the $49,500 initial franchise fee, according to the brand’s 2026 FDD.
- A K9 Resorts Boutique Pet Hotel costs $1,571,395 to $2,099,067 to open, and none of the 17 resorts in Item 19 uses the boutique format.
- K9 Resorts charges a 7% royalty and a 2% Brand Development Fund contribution, and requires local advertising of 3% of Gross Revenues, or 2% above $1,250,000 a year, with a $2,000 monthly minimum.
- K9 Resorts’ Item 19 shows negative EBITDA for every Year 1 cohort performer, from -4% to -11%, and EBITDA of 26% to 29% for every Legacy cohort performer.
- The K9 Resorts Legacy cohort average performer billed $2,466,623 in 2025, with EBITDA of $676,992.
- K9 Resorts had 37 franchised and 10 affiliate-owned resorts at the end of 2025, and 43 signed franchise agreements for resorts not yet open.
These figures come from K9 Resorts's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors. The 9.50% total is an Averan calculation: 7% royalty and 2% Brand Development Fund on $2,466,623, plus the Marketing Service Package at 20% of 2% local advertising and the $206 monthly Technology Fee, divided by $2,466,623.
Own this franchise?
See what your numbers should look like every month.
Talk to Averan → Averan K9 Resorts Conversion Package →- Every Year 1 cohort performer shows negative EBITDA in 2025. EBITDA runs from -$49,358 (-4%) for the top performer to -$115,714 (-11%) for the low performer, on revenue of $1,052,401 to $1,101,708. Year 1 cohort resorts had been open one to one and a half years.
- In the Legacy cohort, EBITDA runs from 26% to 29% of revenue. Revenue in the four Legacy columns runs from $1,743,203 to $2,837,508, a spread of 62.8%.* EBITDA runs from $454,046 to $819,431.
- The columns are ordered by EBITDA, not by revenue. The Legacy median performer billed $2,837,508, more than the Legacy top performer’s $2,819,159. In the Year 2 cohort the median performer’s revenue, $946,752, is below the low performer’s, $953,271. Item 19 does not say how each column was chosen.
- The founder location’s revenue fell in 2025. Revenue fell 3.4%* to $4,038,148 and EBITDA fell 19.0%* to $1,309,010. Payroll rose 9.7%* to $1,532,083 and insurance rose from $24,952 to $74,665.
- Affiliate-owned resorts rose from 5 to 10 in 2025. Five franchised resorts were reacquired in 2025: one each in Arizona, Connecticut and Ohio and two in New Jersey. Franchised resorts went from 35 to 37, with 7 openings and no transfers in 2023 to 2025.
Revenue
How much does a K9 Resorts franchise make?
| Performer | Year 1 | Year 2 | Year 3 | Year 4 | Legacy |
|---|---|---|---|---|---|
| Top | $1,101,708 | $1,858,457 | $2,418,006 | $2,618,844 | $2,819,159 |
| Average | $1,077,055 | $1,143,935 | $1,849,661 | $2,260,035 | $2,466,623 |
| Median | $1,077,055 | $946,752 | $1,264,945 | $2,355,738 | $2,837,508 |
| Low | $1,052,401 | $953,271 | $1,866,032 | $1,805,525 | $1,743,203 |
Source: Item 19, Part II, 2026 FDD. Gross revenue on a cash basis, unaudited. Year 1 resorts were open 1 to 1.5 years at the end of 2025, Year 2 1.5 to 2.5, Year 3 2.5 to 3.5, Year 4 3.5 to 4.5 and Legacy more than 4.5 years.
Item 19 reports 2025 results for the 17 franchised resorts open a full twelve months at December 31, 2025. That is 17 of the 37 franchised resorts operating at that date. All 17 are Luxury Pet Hotels; Item 19 defines that model as 7,500 to 10,000 square feet with 60 or more accommodations.
The Legacy cohort average performer billed $2,466,623 and the Legacy median performer billed $2,837,508. These are the columns for resorts open more than four and a half years. Item 19 prints no average or median across all 17 resorts.
Each column prints one figure for years open and one for square feet. The Year 1 average and median columns are the same in every line. 17 resorts across five cohorts is 3.4 a cohort on average.*
Revenue per square foot runs from $108 to $146 in the Year 1 cohort and from $212 to $342 in the Legacy cohort. Square footage across all twenty columns runs from 7,544 to 9,823.
Founder resort
Founder location, 2021 to 2025
| Line | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Gross revenue | $2,210,847 | $2,510,309 | $3,783,295 | $4,179,978 | $4,038,148 |
| Payroll | $805,377 (36.4%) | $1,003,085 (40.0%) | $1,459,863 (38.6%) | $1,396,824 (33.4%) | $1,532,083 (37.9%) |
| Rent, CAM, real estate tax | 6% | 5.4% | 7.5% | 7.2% | 7.7% |
| Royalties, estimated at 6% | $132,651 | $150,619 | $226,262 | $250,799 | $236,289 |
| Insurance | $11,172 | $19,393 | $18,011 | $24,952 | $74,665 |
| Total expenses | $1,433,407 | $1,739,129 | $2,612,326 | $2,563,811 | $2,729,138 |
| EBITDA | $777,440 (35.2%) | $771,180 (30.7%) | $1,170,969 (31.0%) | $1,616,167 (38.7%) | $1,309,010 (32.4%) |
Source: Item 19, Part I, 2026 FDD. Unaudited. Excludes owner compensation, interest and debt service. Rent is restated to fair market value because the founders own the premises. The founder pays no franchise fees; royalties are estimated at the 6% rate in effect during the period, and brand fund, technology and LMS fees are also estimates.
The founder resort has operated in Fanwood, New Jersey since January 2005. It moved to a 6,674 square foot building in June 2015, and an 8,326 square foot expansion opened in May 2023, bringing it to 15,000 square feet.
Revenue fell 3.4% in 2025, from $4,179,978 to $4,038,148.* EBITDA fell 19.0%*, from $1,616,167 to $1,309,010. Payroll rose 9.7%* and insurance rose from $24,952 to $74,665.
The founder resort billed $269 a square foot in 2025.* The Legacy median franchised resort billed $342 a square foot on 8,288 square feet.
The 2022 expense lines add to $1,749,129, $10,000 more than the printed total of $1,739,129.* At the summed figure, 2022 EBITDA would be $761,180, or 30.3% of revenue.* The 2023 lines add to $2 less than the printed total; 2021, 2024 and 2025 add exactly.
EBITDA
EBITDA by cohort and performer, 2025
| Performer | Year 1 | Year 2 | Year 3 | Year 4 | Legacy |
|---|---|---|---|---|---|
| Top | -$49,358 (-4%) | $271,258 (15%) | $590,139 (24%) | $810,657 (31%) | $819,431 (29%) |
| Average | -$82,536 (-8%) | $71,031 (6%) | $273,612 (15%) | $561,543 (25%) | $676,992 (27%) |
| Median | -$82,536 (-8%) | $74,419 (8%) | $165,277 (13%) | $660,837 (28%) | $757,500 (27%) |
| Low | -$115,714 (-11%) | -$160,376 (-17%) | $65,419 (4%) | $213,135 (12%) | $454,046 (26%) |
Source: Item 19, Part II, 2026 FDD. Unaudited. EBITDA excludes owner compensation, interest and debt service, and has no reserve for capital expenditures.
All four Year 1 columns show negative EBITDA. Revenue across those four columns runs from $1,052,401 to $1,101,708, a spread of 4.7%*, while EBITDA runs from -$49,358 to -$115,714.
The Year 2 low performer shows EBITDA of -17%. The Year 1 low performer shows -11%. The Year 2 top performer shows 15%. These are different resorts, so the columns do not track one resort over time.
All four Legacy columns show EBITDA between 26% and 29%. Revenue across the Legacy columns spreads by 62.8%*, from $1,743,203 to $2,837,508.
The columns are ordered by EBITDA. The Legacy median performer has higher revenue than the Legacy top performer, and the Year 2 and Year 3 median performers have lower revenue than their cohort’s low performer.
Brand charges
Brand charges
| Charge | Amount in the FDD | At $2,466,623 a year * |
|---|---|---|
| Royalty Fee | 7% of Gross Revenues, collected twice a month | $172,664 |
| Brand Development Fund | 2% of monthly Gross Revenues | $49,332 |
| Local advertising, spent by the owner | $20,000 in the first 4 months; then 3% of monthly Gross Revenues, or 2% while annual Gross Revenues exceed $1,250,000, minimum $2,000 a month | $49,332 |
| Marketing Service Package Fee | $650 a month or 20% of local advertising expenditure, whichever is greater | $9,866 |
| Technology Fee | $206 a month, may rise to $350 | $2,472 |
| Local SEO package (Item 11), paid to the vendor | $825 a month, not credited to local advertising | $9,900 |
| Incite LMS | $2.50 per employee per month | Not computed |
| Paid to the brand: royalty, fund, Marketing Service Package and Technology Fee | $234,335 (9.50% of revenue) |
Source: Items 6 and 11, 2026 FDD. The third column is an Averan calculation; rows are rounded to whole dollars, so the four rows paid to the brand add to $1 less than the total. Local advertising and the local SEO package are spent with vendors and are not in the total. Other Item 6 charges, such as training, renewal ($7,500) and transfer, are not recurring.
At the Legacy cohort average performer’s revenue, the charges paid to the brand come to about $234,335 a year, or 9.50% of revenue.* The percentage charges paid to the brand are 9% of revenue at that level: royalty and Brand Development Fund.* The owner also spends $49,332 on local advertising and $9,900 on the local SEO package.*
The Marketing Service Package Fee rises with the owner’s own local advertising. Above $3,250 a month of local advertising*, 20% of that spending is more than the $650 minimum.
Affiliate-owned locations are not required to contribute to the Brand Development Fund. In 2025 the fund spent 36% on SGA, 23% on brand advertising and promotion and 17% on social and web.
Termination for default carries liquidated damages of the greater of $50,000 or up to 24 months of average Royalty Fees and Brand Fund contributions. At $2,466,623 of revenue, 24 months of the 9% would be $443,992.* Transfer costs 50% of the then-current initial fee, capped at $24,750.
Cost to open
Cost to open
| Item | Low | High |
|---|---|---|
| Construction and leasehold improvements | $1,743,803 | $2,950,504 |
| Furniture, fixtures and equipment | $220,225 | $320,647 |
| Additional funds, 3 months | $105,000 | $129,000 |
| Architectural design, engineering and blueprints | $49,500 | $94,500 |
| Initial franchise fee | $49,500 | $49,500 |
| Professional fees | $30,000 | $75,000 |
| Grand opening advertising | $30,000 | $30,000 |
| Real estate and coordination fee | $29,500 | $29,500 |
| Safety and security features | $26,760 | $62,393 |
| Signage | $21,000 | $61,762 |
| Initial inventory | $16,232 | $20,214 |
| Marketing collateral inventory | $13,382 | $16,861 |
| Pre-opening certifications and training travel | $9,400 | $26,450 |
| Computer, software and point of sale | $7,000 | $8,500 |
| Business permits and licenses | $3,000 | $6,500 |
| Utility deposits | $2,000 | $5,000 |
| Insurance premiums | $1,500 | $3,000 |
| Rent deposits | $0 | $60,000 |
| Total | $2,357,802 | $3,949,331 |
Source: Item 7, 2026 FDD. The estimate assumes 6,326 to 10,836 square feet in an existing building with a fire suppression system; a location without one could add $60,000 to $150,000. It excludes ground-up builds. The low construction figure assumes a landlord improvement allowance.
Construction and leasehold improvements are 74.0% of the low total and 74.7% of the high total.* Over the square footage Item 7 assumes, that is $276 a square foot at the low end and $272 at the high end.*
A Boutique Pet Hotel costs $1,571,395 to $2,099,067 to open. That is 33.4% below the luxury low total and 46.9% below the luxury high total.* Item 19 reports no results for a boutique hotel.
$79,000 to $109,000 of the investment is paid to the franchisor or its affiliate, according to the cover page. That includes the $49,500 initial franchise fee and the $29,500 Real Estate and Facility Coordination Fee. A Multi-Unit Developer Agreement carries a development fee of $89,500 for two resorts and $129,500 for three.
The franchisee must sign a lease within 12 months and open within 18 months of signing the Franchise Agreement. Item 11 says franchisees typically open within eighteen months.
Locations
Locations, 2023 to 2025
| Year | Franchised at start | Opened | Terminated | Non-renewed | Reacquired | Ceased, other | Franchised at end | Affiliate-owned at end | Transfers |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 17 | 8 | 0 | 0 | 1 | 0 | 24 | 6 | 0 |
| 2024 | 24 | 10 | 0 | 0 | 0 | 0 | 35 | 5 | 0 |
| 2025 | 35 | 7 | 0 | 0 | 5 | 0 | 37 | 10 | 0 |
| 2023–2025 | 17 | 25 | 0 | 0 | 6 | 0 | 37 | 10 | 0 |
Source: Item 20, Tables 1 to 4, 2026 FDD. The 2024 franchised count includes one affiliate-owned outlet in Florida sold to a franchisee. Item 20 says the company-owned outlets are owned and operated by affiliates.
K9 Resorts had 47 outlets at the end of 2025: 37 franchised and 10 affiliate-owned. Two years earlier, at the start of 2023, there were 17 franchised and 5 affiliate-owned.
The franchisor reacquired 5 franchised resorts in 2025. They were in Arizona, Connecticut, Ohio and New Jersey (two). Item 20 reports no terminations, non-renewals or closures for other reasons in 2023 to 2025, and no transfers to new owners.
43 franchise agreements were signed for resorts not yet open at the end of 2025. The franchisor projects 18 franchised openings in the next fiscal year. Five prospects signed a Multi-Unit Developer Agreement in 2025.
Questions we get asked
Questions owners ask
How much does a K9 Resorts franchise make?
K9 Resorts franchisees averaged $2,466,623 of sales in 2025, with a median of $2,837,508, according to Item 19 of K9 Resorts’ 2026 FDD, issued 13 April 2026. The 17 in that group are 46%* of K9 Resorts’ 37 franchised resorts. Fees paid to K9 Resorts come to about 9.5%* of sales.
How much does it cost to open a K9 Resorts franchise?
Item 7 estimates $2,357,802 to $3,949,331 for a Luxury Pet Hotel and $1,571,395 to $2,099,067 for a Boutique Pet Hotel. Both include the $49,500 initial franchise fee and the $29,500 Real Estate and Facility Coordination Fee. Construction and leasehold improvements are the largest line, $1,743,803 to $2,950,504 for the luxury format.
What fees does a K9 Resorts franchisee pay?
A 7% royalty, a 2% Brand Development Fund contribution, a $206 monthly Technology Fee and a Marketing Service Package Fee of $650 a month or 20% of local advertising, whichever is greater. Owners must also spend 3% of Gross Revenues on local advertising, 2% above $1,250,000 a year, with a $2,000 monthly minimum, and Item 11 lists an $825 monthly local SEO package. On Averan’s calculation the royalty, fund, Marketing Service Package and Technology Fee paid to the brand come to about 9.50% of revenue at $2,466,623. The local advertising and SEO package are spent with vendors.
What is the average revenue of a K9 Resorts franchise?
Item 19 does not print one average for all 17 reporting resorts. It prints columns by age cohort: the Legacy cohort average performer billed $2,466,623 in 2025, and the Year 1 cohort average performer billed $1,077,055. All 17 are Luxury Pet Hotels.
What EBITDA do K9 Resorts franchisees report?
In 2025 every Year 1 cohort column shows negative EBITDA, from -4% to -11%. The Legacy cohort columns show 26% to 29%, or $454,046 to $819,431. EBITDA excludes owner compensation, interest and debt service.
How many K9 Resorts locations are there?
Item 20 reports 37 franchised and 10 affiliate-owned resorts at the end of 2025, and 43 signed franchise agreements for resorts not yet open. The franchisor reacquired 5 franchised resorts in 2025.
What is the difference between the luxury and boutique formats?
A Luxury Pet Hotel is generally about 6,700 square feet and a Boutique Pet Hotel 4,000 to 5,000 square feet; both have 60 or more accommodations. The boutique hotel has smaller accommodations and smaller outdoor areas and needs the franchisor’s written approval. None of the 17 resorts in Item 19 is a boutique hotel.
Questions worth putting to K9 Resorts
These are questions the filing leaves open. An owner or a buyer can put them to the franchisor directly.
- Is the revenue in Item 19 gross sales or collected revenue, and how many locations sit below the average?
- Which factors does K9 Resorts see in its highest-selling locations, such as territory, years open and staffing?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many K9 Resorts locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Numbers Check runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. It also checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Reporting for a K9 Resorts owner
We review your unit economics and cash forecast and build your monthly reporting around the figures on this page.
Talk to Averanthe franchise library, all 431 brands · how franchise unit economics work · running the books across several locations · what Averan does for franchise owners
Other brands in the Pet Care guide:
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- What does this location earn on the money I put into it?It works out the payback period and cash-on-cash return for one unit.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
Where these figures come from
Every figure here comes from K-9 Franchising LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear. The figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. K9 Resorts is a trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: K-9 Franchising LLC, 2026 Franchise Disclosure Document, issued 13 April 2026.