How to Finance a Club Pups Franchise: Suites, Space and SBA
By Marc Cornella
A Club Pups franchise loan funds a dog daycare and boarding facility built around supervised group play and private boarding suites. Because the brand is young and every location needs a large, specially built space, the financing conversation centers on the lease or real estate, the build-out, the equipment that keeps dogs safe and clean, and enough working capital to carry staffing costs while memberships grow.
US Professional Funding is not affiliated with, sponsored by or endorsed by Club Pups; the name is used only to describe the business. Figures in the franchisor’s disclosure document can change, loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice. Review the current Franchise Disclosure Document (FDD) and franchise agreement with a franchise attorney and an accountant before you sign.
Club Pups Franchise Loan at a Glance
- Concept: dog daycare, overnight boarding in private suites without crates, socialization and add-on spa services such as baths and nail trims.
- Home market: the company calls its Lake Norman location in Mooresville, North Carolina, its original home and serves the Carolinas.
- Franchising: the company has announced that it is franchising and has described its Hilton Head Island, South Carolina location as its first franchise location.
- Footprint: its locations page lists six locations in North Carolina and South Carolina, several marked as coming soon.
- Staffing standard: the company advertises a 10:1 dog-to-staff ratio.
- Franchise fee, royalty and investment range: not published on the company’s website; Items 5, 6 and 7 of the current FDD set them out.
- SBA Franchise Directory: listed under code S8412, with a note about the lease rider (explained below).
What Is Club Pups?
Club Pups is a dog daycare and boarding brand based in the Lake Norman area north of Charlotte. Its daycare offers supervised group play with structured rest periods, and its boarding gives each dog a private suite rather than a crate. Socialization, which the company calls social enrichment, is part of the experience, and spa services such as exit baths and nail trims add to each visit.
A membership model. Club Pups sells day passes along with weekly and monthly daycare memberships, and members receive a boarding discount and priority boarding reservations. New dogs go through a temperament evaluation before joining. Membership revenue is attractive to lenders because it is recurring, but your projections will need to show how quickly you can build a member base.
An emerging franchise. The brand began franchising recently, so it has a short franchise track record. That does not rule out financing, but lenders will lean more heavily on your own experience, capital and local market research. Our article on financing an emerging franchise explains what changes when a system is new.
How lenders see it. Lenders understand pet care as a service business with steady demand, but they also know it carries high fixed costs: rent on a large space, staff required to meet supervision ratios, and cleaning and climate control that run every day. They focus on the facility, the lease and the plan to fill both daycare and boarding capacity.
Club Pups Franchise Costs
The company does not publish a fee schedule or investment range on its website, so the figures in your loan request should come from the current FDD. Here is how the budget for a daycare and boarding facility is typically organized.
Initial franchise fee. Item 5 states the fee, when it is paid and whether there are discounts or development fees for multiple locations.
Real estate and build-out. This is usually the largest cost. A daycare and boarding facility needs room for indoor play zones, private suites, a bathing area, a reception and retail space and, ideally, outdoor play yards. The company describes its newest Mooresville location as having multiple distinct play zones and expanded outdoor areas. Build-out often includes drainage, durable flooring, sound control, ventilation, fencing and separate HVAC zones.
Equipment. Expect suite doors and kennel-free suite construction, play-yard surfaces and fencing, bathing tubs and dryers, grooming tables, commercial washers and dryers, cleaning and sanitation systems, cameras and front-desk technology.
Opening costs and working capital. Plan for training, pre-opening payroll, insurance, licenses and permits, launch marketing, opening supplies and enough cash to cover rent and staff while the member base grows.
Total investment. When you review Item 7, look for line items such as:
- Initial franchise fee
- Lease deposits and rent during construction
- Leasehold improvements, drainage and flooring
- Private suites and play-area fixtures
- Outdoor yard surfaces and fencing
- Bathing, laundry and sanitation equipment
- Cameras, computers and software
- Signage, furniture and retail fixtures
- Training, travel and lodging
- Insurance, licenses and permits
- Grand opening marketing
- Additional funds for the initial operating period
Confirm the facility size the Item 7 estimate assumes and that the line items add up to the total.
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the royalty, any brand or marketing fund contribution, technology fees, required local advertising and transfer and renewal fees. Item 8 explains required purchases and approved suppliers.
How lenders factor fees. Royalties and marketing contributions are usually tied to revenue, so a lender subtracts them along with payroll, rent, utilities and supplies before it looks at debt service. The question is whether cash flow after all fees covers the loan payment with room to spare.
Staffing costs. A 10:1 dog-to-staff standard means payroll grows with attendance. Lenders will look for projections that tie staffing to expected daily dog counts rather than a flat number.
Franchisor Requirements for New Owners
The company does not publish minimum net worth, liquid capital or experience requirements on its website. During discovery, ask about financial minimums, territory size, how sites are selected and approved, what training covers and whether you need pet industry experience. Get the answers in writing, since your lender will ask for the same information.
Ways to Own a Club Pups
A new location. A start-up is financed on projections, the lease or purchase contract and construction bids. Our page on pet care facility start-up financing explains how these loans work.
Converting an existing facility. If you own or can acquire a dog care building, ask the franchisor whether a conversion is allowed. Lenders will review the building’s condition and the cost of bringing it to brand standards.
Multiple locations. Several of the company’s listed locations are marked as coming soon, which suggests growth in its home region. Ask whether development agreements are available and what schedule they require.
Financing Options for a Club Pups Franchise
SBA 7(a) loans. With the brand listed on the SBA Franchise Directory, an SBA 7(a) loan can combine the franchise fee, build-out, equipment and working capital in one loan, subject to approval.
SBA 504 loans. If you buy or build your own building, an SBA 504 loan is designed for owner-occupied real estate and long-lived equipment.
Conventional term loans. A conventional business loan can suit experienced owners with strong equity or operators adding a second location.
Equipment financing. Bathing systems, commercial laundry equipment, play-yard surfaces and cameras can be financed separately with equipment loans or leases. See our page on pet care equipment financing.
Working capital and lines of credit. Boarding demand often peaks around holidays and summer travel while daycare may soften, and new locations need time to build membership. A line of credit can smooth those swings. Learn more about pet care working capital and lines of credit.
Seller financing on resales. If an existing location is ever offered for sale, the seller may carry part of the price. A seller note is typically subordinate to the senior loan, and SBA and conventional programs may limit its terms.
SBA Loans for Club Pups Franchisees
Lenders check the SBA Franchise Directory before making an SBA loan to a franchisee. A listing means the brand’s franchise documents have been reviewed for SBA eligibility; each borrower still has to qualify on its own.
The directory note explained. Club Pups is listed under code S8412 with this note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Rider to Lease Agreement may not be executed. In plain English, the franchisor’s lease rider, which normally gives it certain rights in a franchisee’s lease, should not be signed if you own the building and pledge it as collateral. If you lease your space, the rider can be used as usual.
Program basics. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Lenders still review credit, equity injection, experience and projections. Use our SBA loan calculator for planning estimates only; it is not an offer or approval.
How Lenders Evaluate a Club Pups Deal
Personal credit and financial history. A Club Pups franchise loan starts with your credit, tax returns and personal financial statement, and lenders typically require a personal guarantee.
Net worth and liquidity. Lenders expect an equity injection plus reserves after closing, which matters more with a young franchise system.
Industry and management experience. Pet care, hospitality, veterinary or multi-employee management experience strengthens an application. Lenders want to know who will manage daily operations and staffing.
Business plan and projections. Model membership growth, daily daycare attendance, boarding occupancy by season, add-on services, payroll at the brand’s staffing ratio and every franchise fee.
The FDD and franchise agreement. Lenders review term, renewal, transfer, territory and default provisions. Our article on reading the FDD for financing walks through the key items.
Site, lease or real estate. Zoning for animal care, noise, parking and outdoor space all affect approval. The lease term should run at least as long as the loan where possible. Our article on pet care facility leases covers what to negotiate.
Facility and Equipment Deep Dive
The building is the heart of a Club Pups franchise loan. Private suites, separate play zones and outdoor yards require more square footage and more specialized construction than a basic daycare. Drainage, washable surfaces, ventilation and noise control are not optional, and lenders often want a contractor’s bid that breaks them out line by line.
Equipment has a shorter life than the building, so lenders may prefer to finance it separately or over a shorter term. Ask the franchisor which items are required, which suppliers are approved and what the remodel expectations are over the franchise term.
Multi-Unit Growth and Development
Lenders financing a second location look at the first location’s cash flow, staffing depth and management structure. If you sign a development agreement, plan how each location will be funded before the schedule begins.
Real-World Scenarios
A hospitality manager opening a first location. A former hotel manager leases a large flex building and uses an SBA 7(a) loan for the franchise fee, build-out, equipment and working capital.
A dog trainer buying a building. An experienced trainer purchases a building and uses an SBA 504 loan for the real estate, so the lease rider is not signed under the directory note.
An investor planning two locations. An investor with a full-time general manager opens one location, then uses its results to support a conventional loan for a second.
Common Mistakes to Avoid
- Underestimating build-out for drainage, ventilation and sound control
- Projecting full membership too quickly
- Ignoring payroll needed to meet the staffing ratio
- Signing a lease shorter than the loan term
- Budgeting from estimates instead of the current Item 7
For more pitfalls, read common pet care business loan mistakes.
Next Steps to Finance Your Club Pups Franchise
Step 1: Request the FDD. Review Items 5, 6, 7, 8, 10, 11, 12, 17, 19 and 20 with a franchise attorney and an accountant.
Step 2: Talk to owners. Speak with operating owners about ramp-up and staffing.
Step 3: Find your site. Confirm zoning, outdoor space and lease or purchase terms.
Step 4: Get construction bids. Price the build-out and equipment line by line.
Step 5: Build projections. Model memberships, boarding and payroll month by month.
Step 6: Apply and close. Compare SBA, conventional and equipment financing with a financing specialist.
Club Pups Franchise Loan FAQs
How much does a Club Pups franchise cost?
The company does not publish an investment range on its website. Item 7 of the current FDD gives the estimate.
What is the franchise fee and royalty?
Items 5 and 6 of the FDD state the initial fee, royalty and other ongoing fees.
How much liquid capital do I need?
No minimum is published on the company’s website. Ask during discovery and plan for your equity injection plus reserves.
Is Club Pups eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under code S8412, with a lease rider note that applies when real estate secures the loan.
Can I finance the equipment separately?
Often, yes. Bathing, laundry and sanitation equipment can be financed with equipment loans or leases.
Can a first-time owner qualify?
Possibly. Strong credit, liquidity and management experience help, especially with a young franchise system.
How many Club Pups locations are there?
The company’s locations page lists six locations in North Carolina and South Carolina, several marked as coming soon. Item 20 of the FDD gives official outlet counts.
Does the franchisor offer financing?
Item 10 of the FDD discloses any franchisor financing.
How long is the franchise term?
Item 17 of the FDD sets out the term, renewal and transfer conditions.
Does the FDD include financial performance information?
Check Item 19 of the current FDD to see whether it includes financial performance representations.
Final Thoughts
A Club Pups franchise loan is mostly a facility loan: the space, the build-out and the staff it takes to run it safely. Use the current FDD for every figure, plan conservatively for membership growth and keep working capital in reserve while you build your client base.
US Professional Funding helps franchise owners finance start-ups, acquisitions, equipment and working capital. Explore our franchise financing and pet care facility financing solutions.
