FranchiseVerdict
Small Town Play Café logo
FV-02348·CAUTIONExcellent95

Small Town Play Café

Education - Children's ProgramsFranchising since 2025Website
Investment
$501K – $792K
70th pct Children's Pr…
Avg revenue
$1.0M
46th pct Children's Pr…
Royalty
6.0%
15th pct Children's Pr…
Units
1
6th pct Children's Pr…
SBA default

Bottom line

  • Total investment $501K – $792K including a $45K franchise fee, 6.0% ongoing royalty.
  • Average unit revenue of $1.0M/year (median $88K). Estimated payback in 2.2 years.
  • Rated CAUTION with a risk score of 70/100.
  • Emerging franchise — only 1 year of franchising with 1 units. Early-stage systems carry higher risk but may offer better territory availability.

Item 1 · who you're contracting with

The Franchisor

Legal entity
Small Town Play Café Franchising LLC
Incorporated in
New Jersey
HQ
278 North Avenue East, Westfield, New Jersey 07090
Auditor
Metwally CPA PLLC
Audited financials
Franchisor revenue
$180K
Most recent fiscal year

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 Small Town Play Café unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $1,036,555
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: education
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $501K–$792K
Working capital
$
FDD reports $57K–$109K

Unlevered ROIC · per unit

23%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$166K
EBITDA margin
16.0%
Total invested
$730K
Payback
53 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

Levered LBO scenario · Yale Crease Capital framing

What would 25 Small Town Play Café units return on equity?

Edit assumptions

Equity IRR · 5-yr

49.9%

7.57× MOIC

Year-1 DSCR

1.88×

EBITDA ÷ debt service

Equity required

$1.9M

on $9.3M purchase

Total debt

$7.5M

SBA $4.7M + senior + seller note

Overview

About

Small Town Play Café operates an indoor play facility and café hybrid targeting families with young children. Franchisees manage day-to-day operations including supervised play areas, food service, birthday party hosting, and membership programs while maintaining safety/sanitation standards.

CEO
Kimberly Coe
Founded
2025
FDD year
2025
States available
1

Item 7 · what it costs

The Vitals

Total investment
$501K – $792K
All-in to open one unit
Liquid capital
$57K – $109K
Cash you must have on hand
Franchise fee
$45K
Royalty
6.0%
Gross Revenues · typical 6–8%
Ad fund
1.0%
typical 3–5%
Total fee load
7.0%
vs 9–13% typical
Payback period
2.2 yrs
From v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$1.0M
Per unit, per year
Median gross sales
$88K
Item 19 type
Company Owned
Sample size
1 units
vs category median 16 · small
Range (low → high)
$60K$124K
Cohort dispersion
Transparency
10 / 5
vs category median 4 / 5 · above
Revenue rank46th
vs Education - Children's Programs peers
Investment cost rank70th
Lower investment ranks lower (better)
Royalty rate rank15th
Lower royalty = lower percentile (better)
Unit count rank6th
vs Education - Children's Programs peers
Risk score rank85th
Lower risk = lower percentile (better)

Item 20 · unit dynamics

The Growth Chart

Total units
1
Opened
0
Last reporting year
Closed
0
Turnover rate
0.0%
Company-owned
1
Corporate units in the system
% franchised
0%
vs corporate-owned
2023
0±0
Franchised units
2024
0
Franchised units
2025
0
Franchised units

Year-over-year franchised unit counts and net change. Source: FDD Item 20.

Item 12 · 1 state 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.

1

states with franchisees (per FDD Item 12)

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

70
Risk · 0-100
CAUTION70 / 100

Extremely early-stage franchise with single operating unit, unclear parent company viability, and insufficient operational data to validate $500K+ investment thesis.

Score breakdown · what drove the 70 / 100 rating

  1. 01MEDOnly 1 operating unit with unknown growth trajectory indicates unproven scalability and extremely limited performance data
  2. 02HIGHGoing Concern status is FALSE, suggesting the parent company or existing operations may face viability issues
  3. 03MINORHigh investment range ($500K–$792K) with only one comparable unit creates severe benchmarking uncertainty
  4. 04HIGHNo litigation disclosed but single-unit system provides minimal legal/operational precedent to evaluate
  5. 05MINORItem 19 (financial performance) appears absent or unreliable given contradictory metrics (avg revenue $1.04M vs. single unit unknown)

Severity inferred from the FDD text · not a regulatory classification

FDD Items 5, 6, 12, 17 · continued from Risk & Legal

Contract & Territory Detail

Territory
Radius or Population
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
No
Jury trial waiver
Yes
Non-compete
2 yrs
Post-termination restriction
Owner-operator
Optional
Governing law
New Jersey

Item 11

Training & Operations

Classroom training
24 hrs
On-the-job training
56 hrs

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

1 numbers

Locked
(908) 880-••••
NJ

One-time purchase · CSV download · Validation questions included

FDD download

Small Town Play Café · FDD (2025) PDF

Single-page checkout · instant download · CSV export of contacts available separately above