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Launch Park

Launch Franchising, LLC
https://launchfamilyentertainment.com
1-401-822-7835
920 Bald Hill Road, Warwick, Rhode Island 02886

How much does Launch Park cost?

Initial Investment Range

$3,517,213 to $6,501,900

Franchise Fee

$75,100 to $91,900

The franchise described in this Disclosure Document is to operate a Launch Park, which is an indoor sports and family entertainment facility that features many attractions that include, but are not limited to, trampoline courts, climbing walls, laser tag, virtual reality, obstacle courses, ropes courses, go karting, bowling, arcade games, and other competitive attractions.

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Launch Park May 16, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 22, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
3
2
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor explicitly warns its financial condition “calls into question the franchisor's financial ability to provide services and support to you.” Audited financials show a members' deficit (negative net worth) for 2023, and numerous state regulators have required fee deferrals due to financial concerns. While 2024 financials show improvement, this history presents a significant risk regarding the franchisor’s long-term ability to support your business and grow the brand.

Potential Mitigations

  • An experienced franchise accountant should meticulously review all financial statements, including footnotes and the trajectory from negative to positive equity.
  • Discuss the specific state-mandated fee deferrals with your attorney to understand their implications and the protections they may offer.
  • You should ask the franchisor to explain the causes of the past financial weakness and the specific steps taken to ensure future stability.
Citations: Item 21, Special Risks to Consider About This Franchise, Exhibit G, Multi-State Addendum

High Franchisee Turnover

High Risk

Explanation

While the franchise transfer tables in Item 20 do not immediately appear alarming, a state regulator in the Maryland Addendum explicitly adds a risk factor stating: “In the last year, a high percentage of franchised outlets were transferred or ceased operations for other reasons.” This direct warning from a regulator suggests the raw data may not tell the whole story, indicating a potentially high-risk investment environment with notable franchisee churn.

Potential Mitigations

  • It is critical to contact a significant number of current and former franchisees listed in Item 20 to understand their experiences and reasons for leaving.
  • Your business advisor can help you analyze the discrepancy between the Item 20 tables and the regulator's warning.
  • Ask the franchisor to directly address the state's concern and provide detailed, non-confidential context for the recent franchisee transfers and cessations.
Citations: Item 20, Multi-State Addendum

Rapid System Growth

High Risk

Explanation

The franchisor has a significant number of signed franchise agreements for locations that are not yet open. Item 20, Table 5 shows 26 agreements signed but not opened, which is more than the total number of currently operating franchised parks (24). A Minnesota state regulator adds a specific risk warning about this, suggesting that if other franchisees are experiencing delays in opening, you might also face similar challenges.

Potential Mitigations

  • A discussion with your business advisor is important to investigate the reasons for the large backlog of unopened units.
  • Contacting franchisees on the 'signed but not opened' list, if possible, could provide direct insight into the delays.
  • Your attorney should review the timeline and conditions for opening in the Franchise Agreement to understand your obligations and the franchisor's remedies for delays.
Citations: Item 20, Multi-State Addendum

New/Unproven Franchise System

Low Risk

Explanation

This specific risk was not identified in the FDD package. Launch Franchising, LLC (Launch) began franchising in 2013 and has an established system, so it is not considered new or unproven. Generally, investing in a new system carries higher risk due to the lack of a track record for franchisee success, underdeveloped support systems, and minimal brand recognition, making thorough due diligence on the concept's viability crucial.

Potential Mitigations

  • When evaluating any franchise, a business advisor can help you assess the maturity of the system and its track record.
  • It is always wise to ask an attorney to review the franchisor's stated experience in Item 1 and compare it with the system's age shown in Item 20.
  • Your accountant can analyze the financials of any system to see if it relies heavily on initial franchise fees versus ongoing royalties, a potential sign of an unproven model.
Citations: Not applicable

Possible Fad Business

Medium Risk

Explanation

The business model, a family entertainment center, relies on discretionary consumer spending and evolving trends in entertainment. While the franchisor has demonstrated adaptation by shifting from a pure trampoline park to a broader concept, the business remains in a competitive and trend-sensitive industry. A downturn in the economy or a shift in consumer preferences could negatively impact your revenue and profitability, representing a tangible business risk.

Potential Mitigations

  • Working with a business advisor to research the long-term viability of family entertainment centers in your specific market is recommended.
  • You should assess the franchisor's commitment to research and development to ensure the concept remains fresh and competitive.
  • Your accountant can help you create financial models that stress-test profitability based on potential shifts in consumer spending.
Citations: Item 1

Inexperienced Management

Low Risk

Explanation

This risk was not identified in the provided documents. Item 2 details the business experience of the executive team, showing significant prior experience in managing and operating other large franchise systems. An inexperienced management team can be a major liability, as they may lack the specific knowledge required to provide effective franchisee support, manage system growth, or navigate the complexities of the franchisor-franchisee relationship.

Potential Mitigations

  • Before investing, it is advisable to have your business advisor research the backgrounds of the key executives listed in Item 2.
  • Engaging in conversations with current franchisees can provide valuable insight into the competence and responsiveness of the management team.
  • An attorney can help you understand the difference between general business experience and specific franchising experience when reviewing management's qualifications.
Citations: Not applicable

Private Equity Ownership

Low Risk

Explanation

The FDD does not disclose ownership by a private equity firm. This type of ownership can present unique risks, as the firm's primary goal may be a profitable exit within a specific timeframe. This can sometimes lead to decisions, such as increasing fees or cutting support, that prioritize short-term returns over the long-term health of the franchise system. Franchisees should always be aware of the franchisor's ownership structure.

Potential Mitigations

  • A business advisor can help investigate the franchisor's ownership structure and the track record of any parent company.
  • Speaking with your attorney about the 'Assignment' clause in the franchise agreement is critical to understand what happens if the company is sold.
  • You can research online and in business databases to learn more about the parent company's history and investment philosophy.
Citations: Not applicable

Non-Disclosure of Parent Company

Medium Risk

Explanation

The FDD discloses a parent company, LTP Investments LLC, but does not provide its financial statements. The franchisor's own financials show significant and complex financial interdependencies, including substantial cash transfers and shared debt arrangements with the parent. Without the parent's financials, you cannot fully assess the overall financial stability and resources backing the franchise system, creating a notable information gap and risk.

Potential Mitigations

  • Your accountant must carefully analyze the related-party transactions detailed in the footnotes of the franchisor's financial statements.
  • It is prudent to ask the franchisor why the parent company's financials are not included, given the level of financial integration.
  • A discussion with your attorney is warranted to understand the potential risks stemming from this lack of financial transparency.
Citations: Item 1, Item 21, Exhibit G

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD, as Item 1 states that the franchisor does not have a predecessor. A predecessor is a company from which the franchisor acquired the major portion of its assets. When a franchisor has a predecessor, it is important to scrutinize that entity's history for litigation, bankruptcy, or high franchisee turnover, as these issues could carry over to the current system.

Potential Mitigations

  • Your attorney should always confirm the accuracy of the predecessor disclosure in Item 1 of the FDD.
  • When a predecessor is disclosed, it is important to review their litigation and bankruptcy history in Items 3 and 4.
  • A business advisor can help you investigate the history and reputation of any disclosed predecessor.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk was not identified, as Item 3 of the FDD states that there is no litigation that requires disclosure. A pattern of litigation, especially lawsuits initiated by franchisees alleging fraud, misrepresentation, or breach of contract, can be a major red flag. Similarly, a high number of lawsuits initiated by the franchisor against its franchisees may indicate an overly aggressive or litigious culture.

Potential Mitigations

  • An attorney should always be engaged to carefully review any disclosed litigation in Item 3.
  • It is wise to ask current and former franchisees about any litigation or disputes they are aware of, even if not disclosed.
  • A business advisor can help you conduct online searches for news articles or legal filings related to the franchisor that may not be in the FDD.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
3
3
9

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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3

Financial & Fee Risks

Total: 10
3
5
2

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

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4

Legal & Contract Risks

Total: 16
7
4
5

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

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5

Territory & Competition Risks

Total: 5
2
3
0

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.

6

Regulatory & Compliance Risks

Total: 10
4
3
3

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

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7

Franchisor Support Risks

Total: 4
1
3
0

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.

8

Operational Control Risks

Total: 12
3
5
4

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.

9

Term & Exit Risks

Total: 18
8
7
3

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.

10

Miscellaneous Risks

Total: 2
2
0
0

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.