FunBox

The franchise fee of $75,000 is substantially higher than the typical range of $39,500-$55,000 for sports and recreation franchises. What specific additional benefits, training, or support justify this premium pricing?

Your system grew from 7 units to 30 units in one year (328.6% growth), yet experienced 6 unit exits (10% turnover rate) in 2024. What factors contributed to both the rapid expansion and the simultaneous exits?

You terminated 3 franchises in 2024. What were the primary reasons for these terminations, and were they related to performance issues, contract violations, or other factors?

You have no advertising fund (0% ad fund rate), unlike the typical 1-2% for similar franchises. How does the franchisor support unit marketing and customer acquisition without a pooled advertising fund?

Your non-compete clause restricts franchisees within 100 miles post-termination, which exceeds typical ranges of 10-25 miles. How was this 100-mile radius determined, and has it faced any legal challenges?

The total potential franchise term is 10 years with no renewal options mentioned, while typical sports and recreation franchises offer 20-year terms. Why is the contract term half the industry standard, and what happens at the end of the initial 10 years?

Territory is non-exclusive with no encroachment protection listed. Can the franchisor open competing FunBox locations near existing franchisees, or authorize other franchisees to operate in their market?

Can you provide the names and contact information for at least 10 current franchisees and 3-5 recent franchisees who exited in the past 18 months (closures or terminations) so we can conduct independent reference checks?

Of the 3 units closed in 2024, how many were closed by franchisees (voluntary closures) versus closed due to franchise default or franchisor action?

Your Turnover & System Data score is 60/100 and Risk Factors score is 65/100, both significantly below typical ranges. What specific operational or financial challenges are driving these lower scores?

The franchise agreement requires purchasing from franchisor-designated suppliers, including Giant Inflatable Systems (a franchisor affiliate). What percentage of a typical unit's operating costs are sourced through franchisor-affiliated suppliers, and are there documented markups or profit sharing?

What is the typical break-even timeline and annual operating cost structure for a new FunBox unit, given the $75,000 franchise fee and 8% royalty rate?

You offer mandatory binding arbitration with class action and jury trial waivers. Under what circumstances might a franchisee be forced to arbitrate disputes individually rather than joining collective action, and what has this meant in practice?

What specific support and training does FunBox provide post-opening? Your Support & Training score is 83/100, which is strong—can you detail the frequency and nature of ongoing support for franchisees?

Three units transferred ownership in the past year while maintaining the FunBox brand. What are the transfer approval criteria, and do transferring franchisees face fee increases or new contract terms?

Between the 7 units you had 1 year ago and the current 30 units, how many of the new units were opened by entirely new franchisees versus opened by existing franchisees as multi-unit operators?

What is the franchisor's policy on franchise renewal? The contract shows a 10-year initial term, but is renewal automatic, negotiated, or at franchisor discretion, and at what cost?

Have any current or former franchisees filed complaints with state franchise regulators, the Better Business Bureau, or online review platforms? If so, what are the common complaints?

What specific metrics or benchmarks trigger a franchisor termination for underperformance, and how many of the 3 terminations in 2024 were due to failing to meet revenue or operational standards?

Given the low Territory score (50/100) and non-exclusive territory designation, how do you define each franchisee's protected service area, and what happens if the franchisor or another franchisee operates within that area?