Bottom line
- Total investment $647K – $1.6M including a $75K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $452K/year (median $421K). Estimated payback in 1.2 years.
- Rated MODERATE with a risk score of 59/100. SBA loan default rate of 0.0% across 26 loans (below the industry average).
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
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 FunBox unit return on the cash you put in?
Unlevered ROIC · per unit
5%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 FunBox units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$452K
on $2.3M purchase
Total debt
$1.8M
SBA $1.1M + senior + seller note
Overview
About
FunBox franchisees operate entertainment/recreation venues (likely arcade, gaming, or children's play facilities based on brand positioning). Day-to-day operations include facility management, customer service, equipment maintenance, revenue reconciliation, staff scheduling, and marketing to drive foot traffic and repeat visits.
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 · 13 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
FunBox presents elevated risk due to unverifiable financial claims, territorial vulnerability, uncertain franchisor stability (Going Concern status), and questionable unit growth metrics that may mask operational challenges.
Score breakdown · what drove the 59 / 100 rating
- 01MINORNo Item 19 financial performance representations (claimed avg net income of $957,373 is unverified and extraordinarily high relative to $451,565 average revenue — mathematically implausible)
- 02MINORUnprotected territory creates direct competition risk and limits pricing power in saturated markets
- 03MINORExplosive 480% YoY unit growth (20 → 30 units) suggests either aggressive expansion before market validation or aggressive recruitment during economic uncertainty
- 04HIGHGoing Concern status is FALSE, which should be TRUE for a healthy franchisor — potential solvency or sustainability concerns
- 05MINORWide investment range ($647K–$1.63M, 152% spread) indicates unclear cost structure or high variability in actual startup costs
- 06MINOR8% royalty on gross revenue is owed regardless of profitability, creating cash flow pressure in startup/ramp phases
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
13 numbers
One-time purchase · CSV download · Validation questions included
FDD download
FunBox · FDD (2026) PDF