Launch Family Entertainment Franchise Cost, Revenue & Review 2026
- Investment
- $3.5M – $6.5M
- Disclosed sales
- $2.3M
- gross sales, not profit
- SBA charge-off
- Not SBA-matched
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Launch Family Entertainment is a recreation franchise operating indoor trampoline and adventure parks with attractions, arcade, and cafe. Franchisees run the parks, managing attractions, parties, staffing, and safety.
FranchiseVerdict summary · 2026
A Launch Family Entertainment franchise requires a total initial investment of $3.5M – $6.5M, including a $75K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.3M[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 7 headline figures on this page cite a page of the filing.
Overview
- Investment
- $3.5M – $6.5M
- 54th pct Recreation & …
- Avg gross sales
- $2.3M
- Outlet subset14th pct Recreation & …
- Royalty
- 6.0%
- 9th pct Recreation & …
- Units
- 26
- 34th pct Recreation & …
- SBA charge-off
- N/A
Quick verdict · Recreation & Entertainment · color = vs category peers
Green = favorable by >10% vs Recreation & Entertainment median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $3.5M – $6.5M including a $75K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.3M/year (reported for a subset of outlets rather than the whole system).
- RISKVerdict B (Above average), verdict score 53/100 (higher is better).
- GROWTHNegative, pipeline stalled: 26 agreements signed but not yet open against 26 open outlets (Item 20).
- GROWTHSystem growing at 20.0% CAGR over 3 years with 26 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Launch Franchising, LLC
- Parent company
- LTP Investments LLC
- FDD Item 1, page 8 of the 2025 FDD
- Predecessor
- but we have a parent company and affiliates
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Craig Erlich
- Incorporated in
- DE
- HQ
- 920 Bald Hill Road, Warwick, Rhode Island 02886
- Auditor
- RSM US LLP
- Audited financials
- Franchisor revenue
- $5.2M
- vs $6.0M prior year
Affiliated brands
- Launch Park Management Services
- Launch Trampoline Park II
- Launch Grand Rapids
- has not offered
- Launch Manufacturing
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Craig Erlich
- Headquarters
- RI
- Founded
- 2013
- FDD year
- 2025
- States available
- 13
Can you afford it, and what does the money buy?
Entry cost runs 795% above the typical recreation & entertainment franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown22 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $75K | $75K | |
| Technology Feenot refundable | $100 | $400 | |
| Delayed Opening Feenot refundable | $0 | $15K | |
| Late Notification Feenot refundable | $0 | $2K | |
| Security Deposits | $0 | $200K | |
| Site Survey & Due Diligencenot refundable | $8K | $10K | |
| Leasehold Improvementsnot refundable | $1.2M | $2.5M | |
| Rent - 3 Months/Interest Reservesnot refundable | $27K | $225K | |
| Start Up Equipment, Furnishings and Fixturesnot refundable | $575K | $650K | |
| Attraction Costsnot refundable | $1.2M | $2.0M | |
| POS System & Computer Equipmentnot refundable | $55K | $75K | |
| Insurance Start Up - 3 Monthsnot refundable | $9K | $15K | |
| Permits and Licenses (not including liquor license)not refundable | $1K | $30K | |
| Signagenot refundable | $83K | $100K | |
| Ramp Up Advertisingnot refundable | $60K | $60K | |
| Construction Drawings & Documentsnot refundable | $35K | $70K | |
| Travel & Lodging Expenses during Trainingnot refundable | $10K | $10K | |
| Professional Feesnot refundable | $5K | $10K | |
| Project Management Feesnot refundable | $70K | $90K | |
| Loan Closing Costsnot refundable | $0 | $175K | |
| Total initial investment | $3.5M | $6.5M |
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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $3.5M – $6.5M
- Middle of category vs category
- Liquid capital req'd
- $60K – $150K
- Top 40% of category vs category
- Franchise fee
- $75K – $75K
- Middle of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $100 |
| Transfer fee | $56K |
| Renewal fee | $56K |
| Inventory (initial) | $54K – $65K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 192% above the recreation & entertainment norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Launch Family Entertainment until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$5.1M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Launch Family Entertainment unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $2.3M
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- income statement and gross sales
- Sample size
- 14 outlets
- vs category median 5 · large
- Range (low → high)
- $1.2M→$4.6MCited, not corroborated — printed on page 55 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 165 Recreation & Entertainment brands
Revenue is only 0.5x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.3M/year in gross sales. Revenue-to-investment ratio: 0.5x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 8.0% (near the Recreation & Entertainment median).
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 20.0% CAGR over 3 years across 26 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Recreation & Entertainment medians
How Launch Family Entertainment Compares
Category median of published Recreation & Entertainment brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 26
- Opened
- 3
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 4.2%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 92%
- vs corporate-owned
- Net growth (3-yr)
- +20.0%
- Net unit change over 3 years
- 3-yr CAGR
- +20.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 2
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 26
- 1.00 per open outlet · Item 20 Table 5
- Projected new
- 5
- Franchisor's next-year forecast
- Ceased ops
- 12.9%
- Units that stopped operating
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
19 current owners across 13 states.
- FL 3
- TX 3
- MA 2
- NJ 2
- AL 1
- AZ 1
- CA 1
- CO 1
- GA 1
- ID 1
- IL 1
- NY 1
- +1 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Moderate-to-caution risk profile: substantial capital requirement with marginal returns and limited scale, offset by stable unit growth, no litigation, and solid fundamentals.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · RSM US LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor total revenue of $5,199,398 for fiscal year ending December 31, 2024, stated in Item 8 (merchandise sales were 12.4% and supplier allowances/rebates 7.3% of this total). Item 21 audited financial statements (Exhibit G) are not present in the provided text, so balance-sheet and income-statement detail could not be extracted. The cover page (Special Risk #2) and Item 21 note disclose that the franchisor is undercapitalized and its financial condition calls into question its ability to provide services and support.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 53 / 100 verdict
- 01MINORHigh initial capital requirement ($3.5M–$6.5M) with modest average net income ($375K) yields 5.6–9.3 year payback period
- 02MINOROnly 14.3% YoY unit growth suggests maturing/saturating market; unclear if growth is accelerating or decelerating
- 03MINOR6% royalty on gross receipts (not net) means franchisees pay on revenue even during unprofitable periods
- 04MED31-unit system is small; limited brand recognition and marketing leverage compared to larger competitors
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 5 mi |
| Territory population | 200,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 20 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Rhode Island |
| Jury trial waiver | No |
| Governing law | Rhode Island |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 55 hrs
- On-the-job training
- 105 hrs
- Training location
- Warwick, Rhode Island; Dearborn, Michigan; or other designated location
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- Site selection
- Franchisee selects, subject to franchisor approval
- Franchisor financing
- Not offered
- Item 10
- POS system
- Launch-designated POS system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Launch-designated POS system
Item 20 · call current owners
Franchisee Contacts
19 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Launch Family Entertainment franchise?
The total investment to open a Launch Family Entertainment franchise ranges from $3.5M – $6.5M, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Launch Family Entertainment franchise owners earn?
According to Item 19 of the Launch Family Entertainment FDD, the average gross sales per unit is $2.3M. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Launch Family Entertainment?
Launch Family Entertainment is franchised by Launch Franchising, LLC. Its parent company is LTP Investments LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Launch Family Entertainment FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Launch Family Entertainment FDD and qualifies whose outlets they describe.
What is Launch Family Entertainment's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Launch Family 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 Launch Family Entertainment franchise locations are there?
As of their most recent FDD filing, Launch Family Entertainment has 26 total units in the United States, including 24 franchised units and 2 company-owned units. 3 new units were opened in the latest reporting year.
Is Launch Family Entertainment a good franchise to buy?
FranchiseVerdict rates Launch Family Entertainment as a B-grade franchise with a verdict score of 53 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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
Are you the franchisor?
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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.