Launch Family EntertainmentFranchise Cost, Revenue & Review 2026
Data from FDD filing
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]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $3.5M – $6.5M
- 43rd pct Recreation & …
- Avg gross sales
- $2.3M
- 19th pct Recreation & …
- Royalty
- 6.0%
- 6th pct Recreation & …
- Units
- 31
- 30th pct Recreation & …
- SBA default
- N/A
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
At 0.5x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Franchised units fell from 24 to 20 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $3.5M – $6.5M including a $75K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.3M/year, with an estimated 8% cash-on-cash return (based on EBITDA).
- Verdict B (Above Average) with a risk score of 58/100.
- 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
- Launch Franchising, LLC
- Parent company
- LTP Investments LLC
- Predecessor
- but we have a parent company and affiliates
- Prior franchisor entity
- 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
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
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
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).
- CEO
- Craig Erlich
- Headquarters
- RI
- Founded
- 2013
- FDD year
- 2025
- States available
- 13
FDD Item 7 · 2025 filing · 22 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$348K
15.0% margin
Unlevered ROIC
7%
EBITDA / total invested capital
Payback
14.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $3.5M – $6.5M
- Near category avg vs category
- Liquid capital req'd
- $60K – $150K
- Better than avg vs category
- Franchise fee
- $75K – $75K
- Better than avg vs category
- Royalty
- 6.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 13.4 yrs
- From FDD / Item 19
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 |
Financial Performance
- Avg gross sales
- $2.3M
- Per unit, per year
- Median gross sales
- N/A
- Avg ebitda
- $375K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 7.5%
- Based on EBITDA / investment midpoint
- Item 19 type
- Historical financial results of franchised locations
- Sample size
- 14 units
- vs category median 5 · large
- Range (low → high)
- $1.2M→$4.6M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 6 / 5
- vs category median 4 / 5 · above
Compared against 176 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.
vs Recreation & Entertainment averages
How Launch Family Entertainment Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 31
- 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
- 0.0%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 94%
- vs corporate-owned
- Net growth (yr3)
- +14.3%
- Net unit change last year
- 3-yr CAGR
- +20.0%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 5
- Transfers (3yr)
- 2
- Ceased ops
- 12.9%
- Units that stopped operating
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 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.
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.
Risk analysis
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.
Litigation (Item 3)
No litigation required to be disclosed
Largest disclosed settlement: $75,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · RSM US LLP⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- 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 58 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius based on zip codes |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 200,000 |
| 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 |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| 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
- Ongoing training
- Required
- Site selection
- franchisor
- POS system
- POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: POS System
Item 20 · call current owners
Franchisee Contacts
32 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Launch Family Entertainment · FDD (2025) PDF
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. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 31 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 risk score of 58 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.