Bottom line
- Total investment $3.5M – $6.5M including a $75K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.3M/year. Estimated payback in 13.4 years.
- Rated STRONG with a risk score of 49/100.
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 Launch Family Entertainment unit return on the cash you put in?
Unlevered ROIC · per unit
7%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Launch Family Entertainment units return on equity?
Equity IRR · 5-yr
30.5%
3.79× MOIC
Year-1 DSCR
2.64×
EBITDA ÷ debt service
Equity required
$8.0M
on $18.6M purchase
Total debt
$10.6M
SBA $5.0M + senior + seller note
Overview
About
Launch Family Entertainment operates indoor entertainment facilities (likely trampoline parks, arcade centers, or similar recreational venues) serving families and groups. Franchisees manage daily facility operations, staff supervision, customer service, equipment maintenance, and marketing to drive admission and ancillary revenue (food, birthday parties, memberships).
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 20 · 22 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
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
Moderate-to-caution risk profile: substantial capital requirement with marginal returns and limited scale, offset by stable unit growth, no litigation, and solid fundamentals.
Score breakdown · what drove the 49 / 100 rating
- 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
- 04MEDNo Item 19 (financial performance representations) disclosed; average figures may not reflect typical franchisee reality
- 05MED31-unit system is small; limited brand recognition and marketing leverage compared to larger competitors
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
32 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Launch Family Entertainment · FDD (2025) PDF