Bottom line
- Total investment $278K – $754K including a $55K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $769K/year (median $769K). Estimated payback in 2.5 years.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 26 loans (below the industry average).
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 iSmash unit return on the cash you put in?
Unlevered ROIC · per unit
21%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 iSmash units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $6.2M purchase
Total debt
$4.9M
SBA $3.1M + senior + seller note
Overview
About
iSmash franchisees operate entertainment/recreational facilities where customers pay to break and smash items (dishes, electronics, glass, etc.) in a controlled rage-room environment. Daily operations include facility management, customer safety compliance, merchandise restocking, liability management, and marketing to drive walk-in and event 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 · 4 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.
4
states with franchisees (per FDD Item 12)
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
iSmash presents a caution-to-high-risk profile due to franchisor going concern issues and extreme early-stage fragility, despite strong per-unit economics.
Score breakdown · what drove the 57 / 100 rating
- 01HIGHGoing Concern designation indicates franchisor financial distress despite franchisee profitability
- 02MINOROnly 7 units with 150% YoY growth suggests extremely early-stage system vulnerable to collapse
- 03MINORWide investment range ($277K-$753K) with no clarity on cost drivers or unit profitability variance
- 04HIGHNo litigation disclosed but going concern status raises questions about franchisor solvency and support capability
- 05MINORRapid expansion claims (150% growth from ~3-4 units baseline) may not be sustainable or indicative of system health
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
2 numbers
One-time purchase · CSV download · Validation questions included
FDD download
iSmash · FDD (2025) PDF