Drift Zone Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Drift Zone is a recreation franchise operating drift-racing and driving simulator entertainment venues. Franchisees run the venues, managing simulators, sessions, staffing, and events.
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]. FranchiseVerdict grade: D (Below average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $270K – $598K
- 22nd pct Recreation & …
- Avg gross sales
- $474K
- Company-owned onlyn=26th pct Recreation & …
- Royalty
- 5.0%
- 1st pct Recreation & …
- Units
- 2
- 8th pct Recreation & …
- SBA charge-off
- N/A
Quick verdict · Recreation & Entertainment · color = vs category peers
Green = favorable by >10% vs Recreation & Entertainment avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $270K – $598K including a $40K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $474K/year (company-owned outlets only - not franchisee performance).
- RISKVerdict D (Below average), verdict score 38/100 (higher is better).
- FLAGRevenue 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
Corporate structure & franchisor financials
- Legal entity
- Drift Zone International, Inc.
- CEO title
- President
- David Nagamine
- 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
- CEO
- David Nagamine
- Headquarters
- HI
- Founded
- 2022
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 67% below the typical recreation & entertainment franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown15 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $270K – $598K
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $38K
- Top 40% of category vs category
- Franchise fee
- $40K – $40K
- Top 40% of category vs category
- Royalty
- 5.0%
- percentage · 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 |
| Technology fee | $280 |
| Transfer fee | $13K |
| Renewal fee | $5K |
| Inventory (initial) | $4K – $8K |
| 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.
What do units actually make?
Average unit sales run 52% below the recreation & entertainment norm.
Company-owned outlets only - not franchisee performance
Based on a sample of only 2
Source: FDD 2025 · Item 19
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
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Drift Zone unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
17%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Drift Zone units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$949K
on $4.7M purchase
Total debt
$3.8M
SBA $2.4M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Company-owned outlets only - not franchisee performance
Based on a sample of only 2
- Avg gross sales
- $474K
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- affiliate locations
- Sample size
- 2
- vs category median 5 · small
- Range (low → high)
- $336K→$586K
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 3 / 10
- vs category median 4 / 10 · below
Compared against 166 Recreation & Entertainment brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $474K/year in gross sales. Revenue-to-investment ratio: 1.1x. Company-owned outlets only - not franchisee performance.
Fee burden
Total ongoing fee load of 6.0% — below the Recreation & Entertainment average of 8.8%.
Disclosure
Transparency score 3/10 — moderate disclosure depth. Average and range data are available but detailed cohort breakdowns may be limited. Sample size of 2 units — treat as directional only.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Recreation & Entertainment averages
How Drift Zone Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 2
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- 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 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
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
- N/A
- limited sample (1 loan) — rate not shown below 10
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
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
No litigation required to be disclosed.
Largest disclosed settlement: $74,500
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Kezos & Dunlavy
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 38 / 100 verdict
- 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
- 05MEDNo 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
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 10 mi |
| Territory population | 150,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Hawaii |
| Governing law | HI |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed.
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 18 hrs
- Training location
- Merritt Island, FL (franchisee location)
- Ongoing training
- Required
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Not 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
3 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. Important context: Company-owned outlets only - not franchisee performance; Based on a sample of only 2. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Drift Zone FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Drift Zone FDD and qualifies whose outlets they describe.
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 0 franchised units and 2 company-owned units.
Is Drift Zone a good franchise to buy?
FranchiseVerdict rates Drift Zone as a D-grade franchise with a verdict score of 38 out of 100 (higher is better), 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
Are you the franchisor?
If you represent Drift Zone, you can request corrections or provide updated information.
Other Recreation & Entertainment franchises
Compare similar franchise opportunities in the Recreation & Entertainment category
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.