Funcation Station
Bottom line
- Total investment $57K – $135K including a $25K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $376K/year. Estimated payback in 0.6 years.
- Rated MODERATE with a risk score of 60/100.
- Emerging franchise — only 3 years of franchising with 3 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 Funcation Station unit return on the cash you put in?
Unlevered ROIC · per unit
45%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Funcation Station units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$451K
on $2.3M purchase
Total debt
$1.8M
SBA $1.1M + senior + seller note
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.
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 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)
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
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.
Score breakdown · what drove the 60 / 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
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
7 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Funcation Station · FDD (2025) PDF