Bottom line
- Total investment $1.9M – $4.9M including a $75K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $5.0M/year (median $3.7M). Estimated payback in 1.7 years.
- Rated MODERATE with a risk score of 57/100. SBA loan default rate of 0.0% across 10 loans (below the industry average).
- Emerging franchise — only 3 years of franchising with 9 units. Early-stage systems carry higher risk but may offer better territory availability.
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 Slick City Action Park 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 Slick City Action Park units return on equity?
Equity IRR · 5-yr
24.3%
2.96× MOIC
Year-1 DSCR
3.53×
EBITDA ÷ debt service
Equity required
$22.8M
on $39.7M purchase
Total debt
$16.9M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate indoor/outdoor action entertainment facilities (likely go-karts, obstacle courses, climbing walls, arcade games). Day-to-day operations include staff management, equipment maintenance, customer safety protocols, facility cleaning, marketing, and event booking coordination.
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 · 10 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Action park concept with solid per-unit economics masks systemic concerns: franchisor going concern status, unproven growth model, minimal franchise population, and absence of audited financial performance data.
Score breakdown · what drove the 57 / 100 rating
- 01HIGHGoing Concern status indicates potential financial instability at franchisor level despite healthy unit-level financials
- 02MINOROnly 9 units system-wide with unknown growth trajectory suggests minimal scale and market validation
- 03MINORWide investment range ($1.9M–$4.9M) lacks clarity on what drives 155% variance in startup costs
- 04MEDNo Item 19 (Financial Performance Representations) disclosed — cannot independently verify $4.96M average revenue claims
- 05MINOR7% royalty on $4.96M average = $347K annual fee creates high break-even threshold and cash flow pressure
- 06MINOR10-year term is longer than industry standard (typically 5-7 years) with unclear renewal/exit terms
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
15 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Slick City Action Park · FDD (2025) PDF