Bottom line
- Total investment $2.7M – $4.2M including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.0M/year (median $1.9M).
- Rated CAUTION with a risk score of 69/100.
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 DEFY unit return on the cash you put in?
Unlevered ROIC · per unit
8%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 DEFY units return on equity?
Equity IRR · 5-yr
32.8%
4.13× MOIC
Year-1 DSCR
2.47×
EBITDA ÷ debt service
Equity required
$6.3M
on $16.1M purchase
Total debt
$9.8M
SBA $5.0M + senior + seller note
Overview
About
DEFY operates trampoline parks and action sports entertainment venues where franchisees manage daily operations including facility maintenance, safety compliance, customer service, and staff management. Revenue streams include admission fees, party packages, concessions, and member passes; franchisees must navigate the patent non-compete radius from the 2020 settlement.
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 · 11 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
DEFY presents meaningful risk due to undisclosed profitability, IP litigation history, stagnant unit count, and high capital requirements relative to disclosed revenue.
Score breakdown · what drove the 69 / 100 rating
- 01MINORNo net income disclosure (Item 19) prevents ROI validation; only $2.65M-$4.2M investment with unknown profitability
- 02MINORPatent infringement lawsuit settled for $1M in 2020 with 8-mile non-compete radius suggests IP vulnerability and operational restrictions
- 03MINORStagnant unit growth (61 locations) with unknown trajectory indicates market saturation or franchisee churn
- 04MINORHigh investment-to-revenue ratio (1.3x-1.9x) suggests extended payback period and cash flow risk
- 05MINOR6% royalty on $2.02M average revenue = ~$121K annual fee burden on already-thin margins
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
DEFY · FDD (2022) PDF