Risk Score
Pending analysis
Investment Range
$503,700 - $902,250
Franchise Fee
$60,000
Total US Locations
26
Business Summary
Nautical Boat Club operates as a members-only Boating Country Club® where members pay an initial fee and ongoing monthly dues to use a variety of boats and accessories at designated times and for specific periods. The business offers a shared boat ownership experience, allowing members to enjoy boating without the responsibilities of owning and maintaining a personal boat.
Corporate History
Nautical Boat Clubs, LLC was initially formed on May 24, 2012, in Texas as Nautical Toys International, LLC, before changing its name to Nautical Boat Clubs, LLC in June 2013. The company began offering franchises for Nautical Boat Clubs in June 2012. As of February 7, 2024, its parent company is Boating Country Club Holdings, LLC. Nautical Boat Clubs, LLC acquired the Nautical Boat Club license system from Nautical Toys International, LLC (a Florida LLC) in May 2012, which itself had predecessors dating back to 1992.
Financial Overview
Investment Range
$503,700 - $902,250
Franchise Fee (Low)
$60,000
Franchise Fee (High)
$60,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$337,000
Equipment Costs (High)
$630,000
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The auditor's report for Nautical Boat Clubs does not raise substantial doubt about the company's ability to continue as a going concern, issuing an unqualified opinion on its financial statements. The company's trade receivables were all current as of December 31, 2024, with no allowance for credit losses deemed necessary by management. Cash accounts held by federally insured institutions also did not exceed FDIC insurance limits for the reported periods. However, in March 2024, Nautical Boat Clubs entered an agreement with one franchisee to temporarily pause royalty payments for three Florida franchises between April 2024 and April 2025 due to specific issues encountered by that franchisee. The company anticipates these future payments will be collected without impairment, with payments resuming in May 2025 and amortized over sixty months at a fixed interest rate.
Financing Details
Nautical Boat Clubs does not offer any direct or indirect financing to its franchisees. The company also does not receive payments from any persons offering or arranging financing for franchisees, nor does it guarantee any financial obligations like notes or leases.
Performance Metrics
Total US Locations
26
Franchised Units
25
Corporate Units
1
Franchising Since
2012
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Nautical Boat Clubs has no litigation or legal disputes to report, as no litigation is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Nautical Boat Clubs has no bankruptcy history to report, as no bankruptcy information is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
Nautical Boat Clubs franchisees can obtain up to two additional 5-year renewal franchises. To qualify, franchisees must not be in default of their agreement, must have satisfactory inspections, and must provide written notice at least 12 months before the current term ends. They must also sign the then-current franchise agreement, which may have different terms and conditions, pay a renewal franchise fee equal to 25% of the then-current initial franchise fee, sign a general release, and upgrade their club to meet current system standards.
Training & Support Program
Franchisor Assistance
Nautical Boat Clubs provides extensive support to its franchisees both before and after opening. Pre-opening, it assists with marina site selection and lease negotiation, offers guidance on fleet purchases and financing, and makes recommendations for the Nautical Boat Club layout. The franchisor connects franchisees with its Technology and Operating Platform vendor, lends them the Brand Standards Manual, and provides marketing guidelines for various advertising methods. Franchisees receive an initial 5 to 7-day training program covering operations, software, sales, advertising, public relations, and boat maintenance. Additionally, an advisor provides 5 to 7 days of on-site assistance before, during, and after the club's opening. After opening, Nautical Boat Clubs follows up for about 60 days with on-site consultation if needed, provides updates to the Brand Standards Manual and Technology and Operating Platform, and holds periodic conferences. It also offers additional advisory assistance upon reasonable request, manages the Brand Fund, provides website templates, stock advertising, and reviews new advertising. The franchisor also offers guidance on suggested pricing for services and products.
Initial Training Hours
80
Training Location
Austin, TX or other designated location
Ongoing Support
Nautical Boat Clubs provides ongoing support to its franchisees after opening. This includes a 60-day follow-up period with on-site consultation if needed. The franchisor provides updates to the Brand Standards Manual and the Technology and Operating Platform. Franchisees may also attend periodic conferences to discuss operations strategy and networking. Nautical Boat Clubs is reasonably available for additional advisory assistance upon request or when deemed necessary. The franchisor manages the Brand Fund, provides a website template, stock advertising copy, and reviews franchisee-developed advertising.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
Nautical Boat Clubs territories, known as "Designated Areas," are typically defined by a population of 50,000 to 100,000 people and a 5 to 10-mile radius around the franchisee's Office at the Marina Site. The exact size of the Designated Area may vary depending on the specific body of water and access points at the marina location.
Staffing Notes
Nautical Boat Clubs emphasizes that it is not a joint employer with its franchisees, meaning franchisees have sole authority over their employees' wages, benefits, hours, duties, supervision, work rules, discipline, hiring, and working conditions. The franchisee is required to personally manage the Nautical Boat Club for at least 40 hours per week during its operational period. Alternatively, the franchisor may allow the franchisee to employ an approved manager who must work full-time on-site, successfully complete the initial training program, and have no conflicting business interests. Franchisees are fully responsible for their managers' actions and must obtain signed Confidentiality Agreements and Covenants Not to Compete from each manager.