FREEDOM BOAT CLUB

Item 7 outlines initial investment from $223,500 to $502,500, including the $50,000 franchise fee, driven by marina leases, boat acquisitions (averaging $100K+ per vessel), and build-out costs that can spike in waterfront markets. Ongoing fees hit 6% royalties on gross revenues, 0.5% brand fund, plus up to $1,000 monthly technology fee for reservation software—higher than many recreation peers' 4-5% royalties. No Item 19 earnings claim means no validated revenue or profit figures; expect median member dues of $300-500/month per FDD notes, with fleets of 10-20 boats per site yielding $500K-$1M annual revenue estimates from industry benchmarks, but fuel pass-throughs limit margins to 15-25% after high docking and maintenance.

System metrics flash caution: total locations dipped from 238 in 2023 to 230 franchised in 2024 (-3%), with 269 overall including 139 corporate. Just 1 projected new unit signals stalled expansion, alongside 17 terminations and 2 transfers—elevated red flags versus category norms under 10%. SBA data shows 26 loans averaging $569,077, but undisclosed default rates amid litigation over terminations, Florida Franchise Act claims, and misrepresentation suggest execution risks. For boat enthusiasts with marina access, it could float; others might find smoother waters elsewhere.