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Slick City

Slick City Franchise Group LLC
https://www.slickcity.com
1-877-705-2489
17379 Edison Ave., Chesterfield, MO 63005

How much does Slick City cost?

Initial Investment Range

$1,913,100 to $5,020,700

Franchise Fee

$990,100 to $1,548,700

As a Slick City franchisee, you will operate an indoor action park, featuring dry slides, soft play, air court, and multiple other attractions and a city café, catering to both walk-in enthusiasts and special events.

Enjoy our partial free risk analysis below

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Slick City March 24, 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.

1

Franchisor Stability Risks

Start Here
Total: 10
3
2
5

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

Slick City Franchise Group LLC (Slick City) is a new franchisor with a weak financial position. The audited financial statements in Item 21 show a net loss for 2023 and negative shareholder equity of ($19,676) as of year-end 2024. Revenues are heavily dependent on one-time territory fees rather than ongoing royalties. This financial weakness, which has prompted several states to require a surety bond, may impact its ability to support you and grow the brand effectively.

Potential Mitigations

  • Your accountant must conduct a thorough review of the franchisor's financial statements, including the footnotes and auditor's report.
  • Discuss the implications of the negative equity and reliance on initial fees for funding operations with your financial advisor.
  • Inquiring with your attorney about the protections afforded by the state-required surety bonds is an important step.
Citations: Item 21, Exhibit F, Exhibit I

High Franchisee Turnover

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 20, which tracks franchisee turnover, shows no franchised outlets have been terminated, ceased operations, or otherwise left the system because no franchised outlets were open during the reporting period. High turnover is a significant red flag in established systems, often indicating franchisee dissatisfaction or lack of profitability. You should monitor this data in future FDDs as the system grows.

Potential Mitigations

  • Speaking with a range of franchisees listed in future FDDs will be crucial to understand their satisfaction and profitability.
  • Engaging a franchise attorney to review future Item 20 tables can help identify warning signs of systemic issues.
  • Your business advisor can help you benchmark turnover rates against industry averages once data becomes available.
Citations: Not applicable

Rapid System Growth

High Risk

Explanation

Slick City is planning for explosive growth. Item 20 indicates that while no franchised parks were open, 22 agreements were signed and 45 more were projected to open in the next fiscal year. For a new franchisor with negative equity, this rapid expansion creates a significant risk that its support infrastructure—including training, site selection assistance, and operational guidance—may be unable to keep pace with the demand from new franchisees, potentially leading to inadequate support for your business.

Potential Mitigations

  • A business advisor can help you assess whether the franchisor’s support staff and systems are adequate for such rapid expansion.
  • Question the franchisor directly on their specific plans to scale support services to match the projected growth.
  • It is wise to ask early franchisees about the quality and responsiveness of the support they are currently receiving.
Citations: Item 20

New/Unproven Franchise System

High Risk

Explanation

Slick City is a new and unproven franchise system, having been formed in January 2023 and only starting to offer franchises in August 2023. As disclosed in the "Special Risks" section and Item 20, there is no operating history for franchised units. Investing in a new system carries higher intrinsic risk, as the business model's success, brand recognition, and the franchisor's ability to provide effective long-term support have not been established through a history of successful franchisees.

Potential Mitigations

  • Conducting deep due diligence on the management team's prior industry and franchising experience is essential, with help from a business advisor.
  • Your accountant should carefully scrutinize the financial projections you create, given the absence of historical franchisee performance data.
  • Consider seeking more franchisee-favorable terms in the agreement to offset the higher risk, a topic to discuss with your attorney.
Citations: Item 1, Item 4, Item 20, Item 21

Possible Fad Business

Medium Risk

Explanation

The business model, an indoor action park centered on proprietary dry slides, is relatively new to the family entertainment market. While this novelty can be an advantage, it also carries the risk of being a fad with limited long-term consumer demand. Unlike more established concepts like trampoline parks, the sustained appeal of a dry-slide-focused park is not yet proven over a full business cycle, potentially impacting your business's viability after initial curiosity wanes.

Potential Mitigations

  • A business advisor can help you research the long-term market demand for this specific type of family entertainment in your area.
  • Question the franchisor about their plans for future innovation and new attraction development to maintain customer interest.
  • Evaluate the business's potential for repeat visits and its resilience against competing entertainment options with your financial advisor.
Citations: Item 1

Inexperienced Management

Medium Risk

Explanation

While the management team detailed in Item 2 has significant experience operating family entertainment parks, including with major brands like Sky Zone, the franchisor entity itself is very new. Their direct experience in managing a franchise system, which involves different skills like training, support, and supply chain management for independent owners, is limited to the period since August 2023. This could pose a risk if the support systems are not yet mature or effective at scale.

Potential Mitigations

  • A thorough review of the backgrounds of the key support personnel with your business advisor is important.
  • Ask the franchisor about the systems and processes they have specifically implemented to support a franchise network.
  • In discussions with any franchisees who have recently opened, inquire about the quality and expertise of the franchise support team.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD Package. Private equity ownership can sometimes lead to a focus on short-term profits over the long-term health of franchisees. Item 1 indicates the franchisor is a privately held LLC and does not mention ownership by a private equity fund. Therefore, the specific risks associated with this type of ownership structure do not appear to be present here.

Potential Mitigations

  • It is still prudent to ask your attorney to confirm the ownership structure and identify the ultimate beneficial owners.
  • Understanding the franchisor's long-term vision for the brand, whether PE-owned or not, is a key discussion to have with a business advisor.
  • Your attorney can review the assignment clause in the Franchise Agreement to understand what happens if the company is sold in the future.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 1 appears to properly disclose the franchisor and its affiliate relationships. A failure to disclose a parent company can be a significant issue, as it may obscure the true financial backing or control of the franchisor. In this case, the structure seems to be clearly laid out, although the relationships between the franchisor and its affiliates are complex and create other types of risks.

Potential Mitigations

  • Your attorney can help you map out the relationships between the franchisor and all its affiliates to understand their respective roles and how they impact you.
  • In discussions with a business advisor, it's useful to analyze potential conflicts of interest within the disclosed affiliate structure.
  • Verifying corporate filings with the help of an attorney can confirm the accuracy of the ownership structure disclosed in Item 1.
Citations: Not applicable

Predecessor History Issues

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 1 states that the franchisor has no predecessors. A predecessor is a company from which the franchisor acquired a major part of its assets. When predecessors exist, it is important to investigate their history for any signs of trouble, such as litigation or bankruptcy, as this could reflect on the health of the system you are buying into. This risk is not present here.

Potential Mitigations

  • As a matter of due diligence, your attorney can independently verify the business history of the franchisor's founders.
  • A business advisor can help research the history of the specific business concept, even if the corporate entity is new.
  • Always ask current franchisees about the history of the brand as they understand it.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD Package. Item 3, which must disclose certain types of current and past litigation, reports no such legal actions against the franchisor or its management. A pattern of lawsuits, especially those brought by franchisees alleging fraud or misrepresentation, is a major red flag. The absence of such litigation is a positive indicator, though not a guarantee of future performance.

Potential Mitigations

  • An attorney can perform independent public records searches to confirm the absence of litigation.
  • It is good practice to ask current and former franchisees about any informal disputes they may have had with the franchisor.
  • Maintaining open communication and meticulously documenting your interactions can be a valuable practice, as advised by legal counsel.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
5
2
8

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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3

Financial & Fee Risks

Total: 10
5
4
1

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.

4

Legal & Contract Risks

Total: 16
10
4
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

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
2
1
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

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
6
2
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

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
3
1
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
9
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.

9

Term & Exit Risks

Total: 18
14
3
1

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.