FranchiseVerdict
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FV-00872·CAUTIONExcellent81FDD 2022

Escape Hunt

OtherFranchising since 2020Website
Investment
$356K – $663K
80th pct Other
Avg revenue
50th pct Other
Royalty
Units
2
14th pct Other
SBA default

Bottom line

  • Total investment $356K – $663K including a $40K franchise fee.
  • No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
  • Rated CAUTION with a risk score of 69/100.
  • Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.

Item 1 · who you're contracting with

The Franchisor

Legal entity
ESCAPE HUNT USA FRANCHISES LTD.
Parent company
XP Factory plc
Incorporated in
United Kingdom
HQ
Belmont House, Station Way, Crawley RH10 1JA, United Kingdom
Auditor
Plante & Moran, PLLC
Audited financials
Franchisor revenue
$0
vs $27K prior year
⚠ Going-concern note
Disclosed in FDD 2022
Status as of 2022; may have been resolved in a later filing we don't yet have.

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 Escape Hunt unit return on the cash you put in?

Revenue · per unit, per year
$
Item 19 not disclosed — typing your own estimate
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: generic
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $356K–$663K
Working capital
$
FDD reports $30K–$50K

Unlevered ROIC · per unit

19%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$105K
EBITDA margin
14.0%
Total invested
$550K
Payback
63 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Overview

About

Escape Hunt franchisees operate physical escape room venues where customers pay $25-$50+ per person to solve puzzles and escape themed locked rooms within 60 minutes. Day-to-day operations include managing multi-session daily schedules, customer check-ins, room resets between groups, staff supervision, marketing/booking management, and ongoing puzzle/narrative updates to maintain customer novelty.

CEO
Richard Harpham
Founded
2020
FDD year
2022
States available
2

Item 7 · what it costs

The Vitals

Total investment
$356K – $663K
All-in to open one unit
Liquid capital
$30K – $50K
Cash you must have on hand
Franchise fee
$40K
Royalty
The greater of 8% of Gross Sales and $2,000
Ad fund
n/d
Total fee load
8.0%
vs 9–13% typical

Item 19

Financial Performance

This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.

Item 20 · unit dynamics

The Growth Chart

Total units
2
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
0
Corporate units in the system
% franchised
100%
vs corporate-owned
Multi-unit owners
4.5%
Net growth (yr3)
+0.0%
Net unit change last year
3-yr CAGR
+0.0%
Compounded over last 3 years
2020
2±0
Franchised units
2021
2
Franchised units
2022
2
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 7 states
Not registered

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

69
Risk · 0-100
CAUTION69 / 100

Escape Hunt presents elevated risk due to extreme system immaturity (2 units only), absent financial disclosures, high investment requirement, and a mature/declining industry segment with no clear competitive differentiation.

Score breakdown · what drove the 69 / 100 rating

  1. 01MEDOnly 2 existing units suggest extremely limited system validation and unproven scalability of the escape room concept
  2. 02MEDNo Item 19 financial performance data disclosed — impossible to assess realistic ROI on $356K-$663K investment
  3. 03MINORMandatory $2,000/month minimum royalty (8% or $2K floor) creates cash flow pressure even during low-revenue periods
  4. 04MEDHigh initial investment range ($356K-$663K) with no disclosed average unit volumes increases downside risk significantly
  5. 05MINOREscape room industry faces secular headwinds from oversaturation and declining novelty appeal since peak 2016-2018
  6. 06MINORUnknown growth trajectory with only 2 units and no multi-year unit history raises questions about franchisee retention and profitability

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Area
Protected territory
Yes
Initial term
10 years
Renewal term
5 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Required
Governing law
New York

Item 11

Training & Operations

Classroom training
40 hrs
On-the-job training
40 hrs

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

9 numbers

Locked
(213) 576-••••
Suite
CA
(415) 972-••••
One Sansome Street, Suite
CA
(346) 240-••••
GOX Houston, LLC Escape Hunt Houston
TX

One-time purchase · CSV download · Validation questions included

FDD download

Escape Hunt · FDD (2022) PDF

Single-page checkout · instant download · CSV export of contacts available separately above