Drift ZoneFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Drift Zone franchise requires a total initial investment of $270K – $598K, including a $40K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $474K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $270K – $598K
- 21st pct Recreation & …
- Avg gross sales
- $474K
- 8th pct Recreation & …
- Royalty
- 5.0%
- 1st pct Recreation & …
- Units
- 2
- 7th pct Recreation & …
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Recreation & Entertainment · color = vs category peers
Green = >15% above Recreation & Entertainment avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $270K – $598K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $474K/year.
- Verdict A (Top Quintile) with a risk score of 47/100.
- Revenue data based on only 2 reporting units. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Drift Zone International, Inc.
- Incorporated in
- HI
- HQ
- 5654 Anolike Place, Honolulu, HI 96821
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $0
- vs $0 prior year
Affiliated brands
- will not participate in the franchising operations
- Ice Safe
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Drift Zone franchisees operate entertainment venues featuring drift racing simulators, arcade-style driving experiences, or similar motorsport entertainment. Daily operations involve managing customer throughput, maintaining racing equipment/simulators, staffing interactive experiences, and handling point-of-sale transactions across what appears to be a location-based entertainment model.
- CEO
- David Nagamine
- Headquarters
- HI
- Founded
- 2022
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $40K | $40K | |
| Franchise Location - Rent/Security Deposit | $15K | $25K | |
| Leasehold Improvements | $100K | $300K | |
| Architectural and/or Engineering Fees | $10K | $20K | |
| Furniture, Fixtures & Equipment | $30K | $70K | |
| Artwork for Wall | $18K | $28K | |
| Track - Parts & Installation | $13K | $30K | |
| Uniforms, Inventory & Supplies | $4K | $8K | |
| Signage (Interior / Exterior) | $4K | $12K | |
| Utility Deposits, Licenses, Permits and Alarm System Set-up Fees | $4K | $6K | |
| Legal, Accounting, and Insurance | $4K | $7K | |
| P.O.S. System & Installation, Security & Cameras | $3K | $6K | |
| Opening Advertising | $2K | $4K | |
| Franchisee / Certification Training | $4K | $6K | |
| Additional Funds - Initial 3 Months | $20K | $38K | |
| Total initial investment | $270K | $598K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$81K
17.0% margin
Unlevered ROIC
17%
EBITDA / total invested capital
Payback
5.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $270K – $598K
- Better than avg vs category
- Liquid capital req'd
- $20K – $38K
- Better than avg vs category
- Franchise fee
- $40K – $69K
- Better than avg vs category
- Royalty
- 5.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Training fee | $3K |
| Transfer fee | $13K |
| Renewal fee | $5K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $474K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Affiliate
- Sample size
- 2 units
- vs category median 5 · small
- Range (low → high)
- $363K→$586K
- Cohort dispersion (min → max)
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 176 Recreation & Entertainment brands
vs Recreation & Entertainment averages
How Drift Zone Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 0
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $277K
- Median loan
- $277K
- average
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Drift Zone presents HIGH RISK due to a micro-system (2 units), undisclosed profitability, Going Concern issues, and unclear unit economics despite reasonable revenue figures.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $74,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 47 / 100 rating
- 01MEDOnly 2 units in system with unknown growth trajectory suggests extremely limited operating history and minimal proof of concept
- 02MEDNo disclosed net income despite $474k average revenue raises questions about actual profitability and sustainability
- 03HIGHGoing Concern status is FALSE, indicating serious financial viability concerns at corporate level
- 04MINORWide investment range ($269.5k-$598k) without clear breakdown suggests undefined operational requirements or cost control issues
- 05HIGHNo litigation disclosed but Going Concern flag suggests potential undisclosed legal or financial stress
- 06MINORMinimal franchise fee ($39.5k) relative to total investment may indicate weak franchisor support or underfunded infrastructure
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Radius or Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Governing law | Hawaii |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 36 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- Party Center Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Party Center Software
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Drift Zone · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Drift Zone franchise?
The total investment to open a Drift Zone franchise ranges from $270K – $598K, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Drift Zone franchise owners earn?
According to Item 19 of the Drift Zone FDD, the average gross sales per unit is $474K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Drift Zone's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Drift Zone (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Drift Zone franchise locations are there?
As of their most recent FDD filing, Drift Zone has 2 total units in the United States, including 1 franchised units and 2 company-owned units.
Is Drift Zone a good franchise to buy?
FranchiseVerdict rates Drift Zone as a A-grade franchise with a risk score of 47 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.