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iSmash
How much does iSmash cost?
Initial Investment Range
$277,593 to $883,748
Franchise Fee
$99,058 to $262,858
The franchise that we offer is for iSmash, an entertainment center that allows customers to smash common household items using instruments such as baseball bats, crowbars, and sledgehammers from a safe and fun environment.
Enjoy our partial free risk analysis below
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iSmash March 31, 2025 FDD Risk Analysis
Free FDD Library AI Analysis Date: July 16, 2025
DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.
Franchisor Stability Risks
Start HereDisclosure of Franchisor's Financial Instability
High Risk
Explanation
Smash Franchising LLC's (Smash LLC) audited financials for 2024 reveal a significant negative net worth of ($777,539) and a net loss of ($582,753). The franchisor explicitly flags its own “Financial Condition” as a special risk. This financial instability raises serious questions about its ability to fund operations, provide long-term support, and fulfill its obligations to you without being heavily dependent on the sale of new franchises. This poses a fundamental risk to your investment.
Potential Mitigations
- A comprehensive review of the audited financial statements and footnotes with your accountant is essential to assess the franchisor's solvency and sustainability.
- Your franchise attorney should evaluate any state-mandated financial assurances, like bonds or fee deferrals, that may be in place due to the weak financials.
- Engaging a business advisor to discuss the implications of investing with a financially unstable franchisor is highly recommended.
High Franchisee Turnover
Low Risk
Explanation
Based on the FDD, high franchisee turnover does not appear to be a risk at this time. Item 20 data for 2022-2024 shows no terminations, non-renewals, or other cessations of franchised outlets. As a very new system, this is expected. High turnover is a critical indicator of systemic problems, so its absence is positive, but this data reflects a very limited operational history. Future performance could change this assessment.
Potential Mitigations
- Speaking with all operational franchisees listed in Item 20 is crucial to gain insight into their satisfaction and profitability.
- Your business advisor can help you establish a baseline for what would be considered high turnover in this specific industry.
- An attorney can help you understand your rights and the franchisor's obligations if system health declines in the future.
Rapid System Growth
High Risk
Explanation
The franchisor projects extremely rapid growth, with plans to add 44 franchised outlets in the next fiscal year, a significant increase from the 5 operating at the end of 2024. This aggressive expansion, combined with the franchisor's disclosed financial instability (negative net worth and operating losses), creates a high risk that its support systems, training, and staff will be unable to keep pace, potentially leading to inadequate assistance for new and existing franchisees.
Potential Mitigations
- Inquiring with the franchisor about their specific plans to scale support infrastructure to match this projected growth is a key step.
- Your business advisor can help you assess whether the franchisor’s current structure and team can realistically support such a large influx of new owners.
- An accountant should analyze if the franchisor's cash flow can sustain the necessary investment in support infrastructure.
New/Unproven Franchise System
High Risk
Explanation
Smash LLC is a new franchisor, formed in May 2021 and beginning to offer franchises in November 2021. The FDD explicitly highlights its “Short Operating History” as a special risk. Investing in an unproven system carries higher risk, as its business model, support structures, and brand recognition are not yet well-established. The long-term viability and profitability for franchisees are less certain compared to a mature franchise system with a long track record of success.
Potential Mitigations
- Extensive due diligence is required, including speaking with the earliest franchisees about their experience with the system's development and support.
- Your business advisor should help you carefully evaluate the business model's viability and the management team's capability to grow a new system.
- An attorney can advise on negotiating more franchisee-favorable terms to compensate for the higher risk associated with a new system.
Possible Fad Business
Medium Risk
Explanation
The business concept centers on rage rooms, axe throwing, and splatter painting. While these are currently popular forms of entertainment, you should consider the risk that the concept could be a short-term trend or fad. A 10-year franchise agreement is a long-term commitment that could outlast the peak popularity of such activities, potentially impacting future revenue and the sustainability of your business if consumer tastes shift.
Potential Mitigations
- Conducting independent market research with a business advisor to assess the long-term consumer demand for this type of entertainment is crucial.
- It is wise to ask the franchisor about their plans for innovation and adaptation to keep the concept fresh and relevant over the next decade.
- Your financial advisor can help you model different revenue scenarios, including potential declines in demand over the life of the investment.
Inexperienced Management
Medium Risk
Explanation
The management team's experience in operating a franchise system, as opposed to simply running a store, is very limited. The franchisor was formed in 2021. While some executives have industry or sales experience, the collective track record of successfully managing and supporting a national franchise network is not yet established. This could translate to challenges in providing effective franchisee support, training, and strategic guidance, presenting a risk to your business operations.
Potential Mitigations
- You should thoroughly question the management team about their specific experience in supporting franchisees and managing a growing system.
- Speaking with existing franchisees about the quality and responsiveness of the support they currently receive is a critical due diligence step.
- A business advisor can help you assess whether the management team's skills align with the needs of a developing franchise system.
Private Equity Ownership
Low Risk
Explanation
This risk was not identified in the FDD package. Ownership by a private equity firm can sometimes lead to a focus on short-term profits over the long-term health of the franchise system. This might manifest as reduced support, increased fees, or a quick sale of the company. Since this is not the case here, this specific risk is not a concern.
Potential Mitigations
- An attorney can always help you verify the franchisor's ownership structure and identify the ultimate controlling parties.
- Should the franchisor be sold to a private equity firm in the future, it is important to understand your rights by consulting with legal counsel.
- A business advisor can help you research the track record of any potential new owner if the system is sold.
Non-Disclosure of Parent Company
Low Risk
Explanation
This specific risk is not present. The FDD discloses a parent company, Shortino Ventures LLC. However, the parent does not guarantee the franchisor's obligations, nor is it identified as a sole-source supplier. Therefore, under franchise law, its financial statements are not required to be included. You are making your investment decision based on the financials of Smash LLC, which are provided.
Potential Mitigations
- Your accountant can confirm that the provided financial statements for Smash LLC are sufficient for your evaluation.
- An attorney can verify if conditions exist that would legally require the parent company's financials to be disclosed.
- Understanding the relationship between the franchisor and its parent company is a useful discussion to have with a business advisor.
Predecessor History Issues
Low Risk
Explanation
This risk was not identified in the FDD package. The franchisor states in Item 1 that it does not have any predecessors. This means the entity you are contracting with is the same one that developed the system, and there is no hidden history of prior business failures or transfers under a different corporate name that you need to be concerned about.
Potential Mitigations
- Your attorney can help you verify the corporate history of the franchisor entity.
- A business advisor can assist in researching the business history of the individual founders and key managers.
- It is still prudent to ask early franchisees about the history of the company from their perspective.
Pattern of Litigation
Low Risk
Explanation
This risk was not identified in the FDD package. A pattern of litigation, especially cases brought by franchisees alleging fraud or misrepresentation, can be a major red flag. Item 3 of this FDD discloses no such litigation. The absence of a troubled legal history is a positive factor, suggesting a lower likelihood of disputes arising from the franchisor's sales practices or contractual dealings.
Potential Mitigations
- While the FDD discloses no litigation, you can ask your attorney about conducting an independent public records search for any other legal disputes.
- It is always a good practice to ask current and former franchisees about any disputes they may have had, even if they didn't result in litigation.
- Understanding the dispute resolution process in the Franchise Agreement with your attorney is important for any potential future disagreements.
Disclosure & Representation Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
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Financial & Fee Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Legal & Contract Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Territory & Competition Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Regulatory & Compliance Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Franchisor Support Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Operational Control Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Term & Exit Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
Miscellaneous Risks
Example Risk: Franchisee Financial Obligations
Blue Risk
Explanation
This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.
Potential Mitigations
- Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
- Conduct regular risk assessments
- Implement monitoring and reporting systems
Unlock Full Risk Analysis
Purchase the complete risk review to see all 102 risks across all 10 categories.
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