Zoom RoomFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Zoom Room franchise requires a total initial investment of $303K – $465K, including a $50K franchise fee and an ongoing 8.0% royalty[2]. Per the 2026 FDD, average unit revenue was $410K[2]. SBA 7(a) loans show a 6.4% charge-off rate across 47 loans[1]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $303K – $465K
- 59th pct Pet Services
- Avg gross sales
- $410K
- 19th pct Pet Services
- Royalty
- 8.0%
- 50th pct Pet Services
- Units
- 60
- 64th pct Pet Services
- SBA default
- 6.4%
- system-wide median varies by category
Quick verdict · Pet Services · color = vs category peers
Green = >15% above Pet Services 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
The system contracted 9% year-over-year. Investigate why units are closing.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $303K – $465K including a $50K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $410K/year (median $390K), with an estimated 9% cash-on-cash return (based on P&L Bottom Line).
- Verdict F (Bottom Quintile) with a risk score of 92/100. SBA loan charge-off rate of 6.4% across 47 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Zoom Room Franchising, LLC
- Parent company
- Zoom Room, Inc.
- Incorporated in
- CO
- HQ
- 11836 Teale Street, Culver City, CA 90230
- Auditor
- Kezos & Dunlavy
- Audited financials
- Franchisor revenue
- $3.5M
- vs $3.6M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2026
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
Overview
About
Zoom Room franchisees operate escape room and interactive entertainment venues where customers pay per-group to solve puzzles and challenges in themed rooms. Day-to-day operations include hosting game sessions, managing customer flow, maintaining room sets and technology, scheduling reservations, and managing 10-20+ staff members across multiple themed experiences.
- CEO
- Mark Van Wye
- Headquarters
- CA
- Founded
- 2017
- FDD year
- 2026
- States available
- 21
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $9K | $30K |
| Equipment, build-out, other | $244K | $385K |
| Total initial investment | $303K | $465K |
Source: Zoom Room 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$57K
14.0% margin
Unlevered ROIC
14%
EBITDA / total invested capital
Payback
7.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $303K – $465K
- Near category avg vs category
- Liquid capital req'd
- $9K – $30K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Near category avg vs category
- Royalty
- 8.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
- Payback period
- 11.4 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $150 |
| Renewal fee | $10K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $410K
- Per unit, per year
- Median gross sales
- $390K
- Avg p&l bottom line
- $34K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 8.8%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Historical Profits and Losses
- Sample size
- 48 units
- vs category median 12 · large
- Range (low → high)
- $167K→$932K
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 75 Pet Services brands
vs Pet Services averages
How Zoom Room Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 60
- Opened
- 7
- Last reporting year
- Closed
- 13
- Turnover rate
- 21.7%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
- Net growth (yr3)
- -9.4%
- Net unit change last year
- 3-yr CAGR
- +11.5%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 3
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 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.
- Total loans
- 47
- Loan volume
- $10.7M
- Median loan
- $273K
- 50th percentile
- Charge-off rate
- 6.4%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 57.1%
- 5-yr charge-off
- 50.0%
- Loans approved 2021+
- Active lenders
- 12
- Defaults
- 3
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Zoom Room's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 8-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Zoom Room presents caution-level risk due to system contraction, razor-thin unit economics, and high capital requirements relative to actual profitability, suggesting margin compression and potential franchisee cash flow distress.
Audited financials (Item 21)
Yes · Kezos & Dunlavy⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 92 / 100 rating
- 01MINORUnit count declining 9.4% YoY (60 units) signals system contraction and potential demand softness
- 02MINORNet income of $33,663 on $409,758 revenue = 8.2% net margin, barely covering 8% royalty obligations with minimal profit
- 03MINORHigh initial investment ($302k-$465k) paired with thin margins creates extended payback period and elevated financial stress
- 04MINORWide gap between average revenue ($409k) and average net income suggests inconsistent unit performance and operational challenges
- 05MINOR8% royalty on weekly gross sales (not net) increases franchisee burden during revenue downturns
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 |
| Territory type | Geographic area based on population |
| Protected territory | Yes |
| 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 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 73 hrs
- On-the-job training
- 46 hrs
- POS system
- Square Terminal
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square Terminal
Item 20 · call current owners
Franchisee Contacts
65 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Zoom Room · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Zoom Room franchise?
The total investment to open a Zoom Room franchise ranges from $303K – $465K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Zoom Room franchise owners earn?
According to Item 19 of the Zoom Room FDD, the average gross sales per unit is $410K. The median is $390K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Zoom Room's franchise failure rate?
Based on SBA 7(a) loan data, Zoom Room has a charge-off rate of 6.4% across 47 loans, meaning 6.4% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Zoom Room franchise locations are there?
As of their most recent FDD filing, Zoom Room has 60 total units in the United States, including 52 franchised units and 2 company-owned units. 7 new units were opened in the latest reporting year.
Is Zoom Room a good franchise to buy?
FranchiseVerdict rates Zoom Room as a F-grade franchise with a risk score of 92 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.