Bottom line
- Total investment $270K – $598K including a $40K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $474K/year.
- Rated CAUTION with a risk score of 75/100. SBA loan default rate of 0.0% across 2 loans (below the industry average).
- Emerging franchise — only 3 years of franchising with 2 units. Early-stage systems carry higher risk but may offer better territory availability.
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 Drift Zone unit return on the cash you put in?
Unlevered ROIC · per unit
17%
Below typical band (30–60%)
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
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.
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 · 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 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.
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.
Score breakdown · what drove the 75 / 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
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
15 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Drift Zone · FDD (2025) PDF