Funcation StationFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Funcation Station franchise requires a total initial investment of $57K – $135K, including a $25K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $376K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $57K – $135K
- 16th pct Education
- Avg gross sales
- $376K
- 17th pct Education
- Royalty
- 8.0%
- 31st pct Education
- Units
- 3
- 11th pct Education
- SBA default
- N/A
Quick verdict · Education · color = vs category peers
Green = >15% above Education 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
Each dollar invested generates 3.9x in gross revenue, well above the typical 1.5-2.5x range.
Started franchising in 2023. Newer systems carry more uncertainty but may offer better territories.
161% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $57K – $135K including a $25K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $376K/year, with an estimated 161% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 49/100.
- Revenue data based on only 1 reporting unit. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Funcation Station Franchising, LLC
- Incorporated in
- NY
- HQ
- 60 South 2nd Street, Deer Park, New York 11729
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $300
- vs $16K prior year
Affiliated brands
- has not in the past and does not now offer franchises in any lines of business
- operates a business similar to the Franchised Business and is the owner of the Licensed Marks
- Funcation Station
- maintains a pr
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Funcation Station franchisees operate entertainment venues (likely indoor play spaces, arcade, or activity centers) catering to children and families. Daily operations involve managing facility safety/cleanliness, staffing, customer service, equipment maintenance, and driving foot traffic through local marketing and group bookings.
- CEO
- Joshua Montalban
- Headquarters
- NY
- Founded
- 2023
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing · 16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $25K | $25K | |
| Construction, Leasehold Improvements | $0 | $1K | |
| Storage Unit Rent Deposits | $640 | $5K | |
| Furniture and Fixtures | $0 | $2K | |
| Equipment and Van | $2K | $15K | |
| Utility Deposits | $150 | $188 | |
| Signage | $3K | $4K | |
| Computer, Software, and Business Management System | $75 | $2K | |
| Grand Opening Marketing | $4K | $5K | |
| Opening Inventory | $10K | $15K | |
| Insurance Deposits - Three Months | $25 | $75 | |
| Travel for Initial Training | $1K | $3K | |
| Professional Fees | $4K | $8K | |
| Licenses and Permits | $250 | $500 | |
| Printing, Stationery and Office Supplies | $776 | $1K | |
| Additional Funds - Three Months | $7K | $17K | |
| Total initial investment | $57K | $103K |
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
$49K
13.0% margin
Unlevered ROIC
45%
EBITDA / total invested capital
Payback
26 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $57K – $135K
- Better than avg vs category
- Liquid capital req'd
- $7K – $17K
- Better than avg vs category
- Franchise fee
- $25K – $67K
- Better than avg vs category
- Royalty
- 8.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
- Payback period
- 0.6 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $150 |
| Transfer fee | $13K |
| Renewal fee | $3K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $376K
- Per unit, per year
- Median gross sales
- N/A
- Avg p&l bottom line
- $154K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 160.5%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Actual
- Sample size
- 1 units
- vs category median 14 · small
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 237 Education brands
vs Education averages
How Funcation Station Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 2
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 67%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 2
- 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 · 2 states 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.
2
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Funcation Station presents high-risk profile due to micro-scale system (3 units), unverified financial claims, going concern issues, and absence of audited performance data — classic early-stage franchise with existential franchisor stability concerns.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $67,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Metwally CPA PLLC
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 49 / 100 rating
- 01MINOROnly 3 operating units with unknown growth trajectory indicates extremely small, unproven system with high failure risk
- 02HIGHGoing Concern status is FALSE — suggests franchisor financial instability or viability questions
- 03MEDNo Item 19 (financial performance representations) disclosed — cannot verify claimed $375,705 avg revenue or $153,791 net income figures
- 04MINOR8% royalty on $375K average revenue = $30K annual royalties, which represents 19.5% of claimed net income — unsustainably high cost structure
- 05MEDMassive investment range spread ($57K-$134K) suggests inconsistent unit economics or hidden costs not fully disclosed
- 06MINORFranchise fee ($25K) is 44% of minimum investment floor — disproportionately high upfront cost relative to total investment
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 |
| Allowed renewalsℹ | 1 |
| Territory type | Population |
| Protected territory | Yes |
| Territory sizeℹ | 500,000 people |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | 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 |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 15 hrs
- On-the-job training
- 25 hrs
- Training location
- On-site and off-site
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
7 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Funcation Station · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Funcation Station franchise?
The total investment to open a Funcation Station franchise ranges from $57K – $135K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Funcation Station franchise owners earn?
According to Item 19 of the Funcation Station FDD, the average gross sales per unit is $376K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Funcation Station's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Funcation Station (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 Funcation Station franchise locations are there?
As of their most recent FDD filing, Funcation Station has 3 total units in the United States, including 1 franchised units and 1 company-owned units. 2 new units were opened in the latest reporting year.
Is Funcation Station a good franchise to buy?
FranchiseVerdict rates Funcation Station as a A-grade franchise with a risk score of 49 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.