Larks EntertainmentFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Larks Entertainment franchise requires a total initial investment of $1.9M – $4.1M, including a $40K franchise fee and an ongoing 7.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: D. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $1.9M – $4.1M
- 38th pct Recreation & …
- Avg gross sales
- N/A
- 23rd pct Recreation & …
- Royalty
- 7.0%
- 18th pct Recreation & …
- Units
- 3
- 11th pct Recreation & …
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Recreation & Entertainment · color = vs category peers
Green = >15% above Recreation & Entertainment 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
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $1.9M – $4.1M including a $40K franchise fee, 7.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict D (Below Average) with a risk score of 75/100.
- Auditor disclosed a going-concern note, which 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
- LARKS, LLC
- Parent company
- Oak Capital Group, LLC
- Incorporated in
- FL
- HQ
- 1207 S. White Chapel Blvd., Suite #130, Southlake, Texas 76092
- Auditor
- McMillen Dovali Co., P.C.
- Audited financials
- Franchisor revenue
- $120K
- vs $57K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Larks Services
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Larks Entertainment franchisees operate entertainment venues/experiences, likely managing customer-facing operations, event scheduling, and local marketing within their protected territory. Day-to-day activities typically involve staff management, customer service delivery, facility maintenance, and generating revenue through ticket sales or service fees subject to the 7% gross revenue royalty.
- CEO
- Curtis (Curt) L. Skallerup
- Headquarters
- TX
- Founded
- 2020
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $40K | $40K |
| Working capital (3–6 mo) | $100K | $100K |
| Equipment, build-out, other | $1.7M | $4.0M |
| Total initial investment | $1.9M | $4.1M |
Source: Larks Entertainment 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.9M – $4.1M
- Better than avg vs category
- Liquid capital req'd
- $100K – $100K
- Better than avg vs category
- Franchise fee
- $40K – $40K
- Better than avg vs category
- Royalty
- 7.0%
- Gross Revenue · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $5K |
| Inventory (initial) | $20K – $35K |
| Total fee load | 9.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Recreation & Entertainment averages
How Larks Entertainment Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 33%
- vs corporate-owned
3-year detail · Item 20
- Transfers (3yr)
- 0
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 loan disclosures. This brand has only 2 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 2
- Loan volume
- $2.2M
- Median loan
- $1.1M
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 2
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Larks Entertainment's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 2 lenders with concentration factor
- Per-state charge-off rates across 2 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage entertainment franchise with only 3 units, led by a CEO with significant litigation history at prior franchise, no financial performance disclosure, and going concern status—presents extreme risk of franchisor instability and unproven business model.
Litigation (Item 3)
7 case reference(s): 1 pending, 0 settled.
Largest disclosed settlement: $1
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · McMillen Dovali Co., P.C.⚠ Going-concern note flagged
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: No
Score breakdown · what drove the 75 / 100 rating
- 01HIGHCEO has history of material litigation at previous franchise (Altitude Franchising) including pending arbitrations and fraudulent inducement allegations from former franchisees
- 02MINOROnly 3 existing units with unknown/likely stagnant growth trajectory raises system viability concerns
- 03MEDHigh investment range ($1.85M–$4.125M) combined with zero disclosed financial performance metrics (no Item 19 equivalent) makes ROI impossible to validate
- 04HIGHGoing concern status indicates financial instability at corporate level, creating risk of franchisor collapse and loss of support
- 05HIGHCEO's litigation pattern suggests potential governance/ethics concerns that may carry forward to current franchise system
- 06MINORLack of revenue and profitability disclosure is a major red flag—prevents informed investment decision and suggests potential performance concealment
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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Termination notice | 30 days |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 9 |
View Item 3 litigation summary
7 case reference(s): 1 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 80 hrs
- Training location
- On-site at franchisee's restaurant
- Site selection
- joint
- POS system
- Toast
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Toast
Item 20 · call current owners
Franchisee Contacts
2 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Larks Entertainment · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Larks Entertainment franchise?
The total investment to open a Larks Entertainment franchise ranges from $1.9M – $4.1M, with an initial franchise fee of $40K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Larks Entertainment franchise owners earn?
Larks Entertainment does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Larks Entertainment's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Larks Entertainment (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 Larks Entertainment franchise locations are there?
As of their most recent FDD filing, Larks Entertainment has 3 total units in the United States, including 0 franchised units and 2 company-owned units. 1 new units were opened in the latest reporting year.
Is Larks Entertainment a good franchise to buy?
FranchiseVerdict rates Larks Entertainment as a D-grade franchise with a risk score of 75 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.
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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.