About Funcation Station Franchise
Funcation Station is a mobile soft play equipment rental franchise serving families with children from birth to five years old.
Franchising since 2023, the brand provides portable play structures and related equipment for birthday parties, community events, and private gatherings, bringing the entertainment directly to the customer's chosen venue.
The initial franchise fee is $35,000.
Funcation Station Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $35,000 | One-time payment upon signing |
| Royalty Fee | 8% of Gross Sales, but subject to Minimum Weekly Royalty Fee Requirements of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 3% of Gross Sales or $25 per week, whichever is greater, currently 2% of Gross Sales or $25 per week, whichever is greater | National brand fund |
| Total Investment Range | $67,127 – $174,558 | Includes build-out, inventory, working capital |
The investment range of $67K–$175K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (8% of Gross Sales, but subject to Minimum Weekly Royalty Fee Requirements) and marketing fee (Up to 3% of Gross Sales or $25 per week, whichever is greater, currently 2% of Gross Sales or $25 per week, whichever is greater) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $97,000 |
| Construction, Leasehold Improvements | $0 | $1,000 |
| Storage Unit Rent Deposits | $640 | $4,800 |
| Furniture and Fixtures | $0 | $1,600 |
| Equipment and Van | $2,199 | $15,250 |
| Utility Deposits | $150 | $188 |
| Signage | $2,500 | $3,500 |
| Computer, Software, and Business Management System | $75 | $1,625 |
| Grand Opening Marketing | $3,500 | $5,000 |
| Opening Inventory | $10,310 | $15,465 |
| Insurance Deposits – Three Months | $25 | $75 |
| Travel for Initial Training | $1,000 | $3,100 |
| Professional Fees | $3,500 | $7,500 |
| Licenses and Permits | $250 | $500 |
| Printing, Stationery and Office Supplies | $776 | $1,330 |
| Additional Funds – Three Months | $7,202 | $16,625 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then current initial franchise fee |
| Renewal Fee | 10% of the then current initial franchise fee |
| Technology Fee | Up to $300 per month for your first Territory plus an additional $200 per month for each Additional Territory, currently $150 per month for your first Territory plus an additional $100 per month for each Additional Territory |
| Audit Fee | Cost of audit |
| Franchisee Directed Local Marketing | 1% of Gross Sales or $150 per month, whichever is greater |
| Software Fees | $125 per month |
| Local and Regional Advertising Cooperatives | Up to 1% of monthly Gross Sales, currently not assessed |
| Annual Conference Attendance Fee | Our then current conference fee, not greater than $1,500 |
| Additional Employee Initial Training | Our then current training fee, currently $500 per person per day |
| Supplemental On-Site Training | Our then current daily rate per trainer, plus expenses we incur. Current rate is $500 per day |
| Interest | 18% per annum from due date |
| Reporting Non-Compliance | $150 per occurrence |
| Operations Non-Compliance | $450 to $1,000 per occurrence |
| Payment Non-Compliance | $150 per occurrence |
| Quality Assurance Audit | Actual costs incurred by us or fees designated by us |
| Collections | Actual fees, costs, and expenses |
| NSF Check Fee of Failed Electronic Fund Transfer | 5% of amount or $50, whichever is greater, or maximum fee allowed by law |
| Non-Compliance (fees, costs, expenses) | Actual fees, costs, and expenses |
| Supplier Evaluation | Actual fees, costs, and expenses |
| Management Service | 20% of Gross Sales plus expenses |
| Operation Manual Replacement Fee | $500 |
| Relocation Fee | Costs and expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 1 week (40 hours) |
| Classroom Training | 15 |
| On-the-Job Training | 25 |
| Training Location | Suffolk County, New York |
| Additional Training | The franchisor may require franchisees and their Operating Managers to participate in supplemental on-site training, for which a fee of $500 per on-site trainer per day plus travel, meals, and accommodation expenses will be charged. Initial training for replacement Operating Managers also incurs a $500 per manager per day fee plus expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Approximately 500,000 people per territory |
| Description | Franchisees operate within a designated operating territory, typically comprising a geographic area of approximately 500,000 people. Additional territories can be added subject to availability, franchisor approval, and payment of additional Initial Franchise Fees. The franchisor retains the right to operate and grant franchises outside the franchisee's operating territory and to engage in various activities, including using the Licensed Marks and System in alternative distribution channels or for corporate accounts, even within the franchisee's operating territory. Franchisees may provide services to 'Out of Territory Customers' in an 'Open Area' (within a 10-mile radius of their Operating Territory and not an Assigned Area) under specific conditions, but cannot directly solicit customers outside their territory or in another franchisee's Assigned Area. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | 10% of the then current initial franchise fee |
| Renewal Conditions | To renew, franchisees must be in compliance with the Franchise Agreement, provide 180 days' prior written notice, sign the then-current Franchise Agreement and related ancillary agreements (including personal guarantees from owners and spouses), pay a renewal fee, and meet all other renewal requirements. Additional training may be required. |
| Transfer Fee | 50% of the then current initial franchise fee |
| Transfer Conditions | Transfers require prior written consent from the franchisor. Conditions for approval include 30 days' prior written notice, satisfaction of all accrued monetary and other obligations, no default by franchisee or owners, transferee being bound by the agreement terms (including personal guarantees from owners and spouses), execution of a general release, transfer of assets and approved location, completion of training by transferee/managers, franchisor approval of price/terms, and execution of confidentiality agreements by transferee's employees. |
| Termination for Cause | The franchisor can terminate the agreement for various defaults, including insolvency, bankruptcy, abandonment of the business, intentional non-compliance with terms, operating in violation of laws posing a health/safety threat, providing misleading financial data, unauthorized transfer, misuse of Licensed Marks, or failure to comply with Anti-Terrorism Laws. Some defaults allow a 10-day or 30-day cure period, while others result in automatic termination without cure. |
| Non-Compete Period | 24 months |
| Non-Compete Details | During the term of the franchise and for 24 months after termination or expiration, franchisees (and their owners/spouses) are prohibited from having any interest in or operating a competitive business within their Operating Territory, a 25-mile radius of their Operating Territory, or the operating territory of any other Funcation Station Business. This includes non-disclosure and non-solicitation covenants. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee or, if a Corporate Entity, its Managing Owner, must be personally responsible for the daily management and supervision of the Franchised Business and dedicate full-time efforts to its operation. The Managing Owner must satisfactorily complete initial training and obtain all required licenses. A manager may be hired to assume daily management if they meet franchisor standards, complete training, sign confidentiality/non-competition agreements, and agree to on-site management responsibility. |
| Required Suppliers | Franchisees must exclusively purchase and use System Supplies and System Equipment and Materials from the franchisor, its affiliates, and/or designated suppliers. Signage must be purchased from designated suppliers. Franchisees are required to purchase, license, and utilize the franchisor-designated Business Management System and a computer system for their Administrative Office. Designated suppliers and vendors must be used for credit card processing, online ordering, customer rewards, and gift card systems. All branded marketing materials must be purchased from the franchisor or its designated exclusive supplier. |
| Supply Restrictions | The franchisor or its affiliates may be designated as exclusive suppliers for source-restricted goods and services. The franchisor may also designate a third party as the sole and exclusive supplier. If no supplier is designated for a particular item, franchisees must purchase from suppliers meeting the franchisor's specifications and standards. |
| Franchisor Revenue from Suppliers | The franchisor and/or its affiliates may receive rebates, payments, and other material benefits from suppliers based on franchisee purchases. As of the Issuance Date, the franchisor has not received revenue from franchisee purchases of source-restricted products or services. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligation. |
Funcation Station Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Funcation Station Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Funcation Station System Growth
Funcation Station currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 1 |
| 2021 | 0 | 0 | 1 |
| 2022 | 0 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 23 states: CA, CT, FL, HI, IL, IN, KY, ME, MD, MI, MN, NE, NY, NC, ND, RI, SC, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Audited by Metwally CPA PLLC for year ending December 31.
Funcation Station Franchise — FAQ
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