Risk Score
Pending analysis
Investment Range
$626,500 - $2,295,500
Franchise Fee
$45,000
Total US Locations
75
Business Summary
Escapology operates and franchises live escape game businesses, offering high-quality escape room experiences. These facilities are typically located in storefronts or as additions within family entertainment centers or theme parks. Customers cooperatively discover clues, solve puzzles, and accomplish tasks within a set time frame to escape a themed room.
Corporate History
Escapology, LLC was formed in Florida on September 22, 2014, and began operating a business similar to its current offerings in December 2014. Escapology started offering franchises for its Live Escape Games System in January 2016. The company is part of a larger corporate structure, with Escapology Holdings, LLC as its direct parent, and ultimately controlled by Peninsula Capital Partners, an investment firm. Peninsula Capital Partners also owns a controlling interest in Gateway Market Canada, Inc., which operates newsstands and convenience stores in Canada, but Escapology's management does not have roles in that affiliate.
Financial Overview
Investment Range
$626,500 - $2,295,500
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$45,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$500,000
Equipment Costs (High)
$1,790,000
Working Capital
$59,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Escapology's financial statements have received an unqualified opinion from its independent auditors, indicating they are presented fairly. However, Escapology is a co-guarantor for significant loans of its affiliates. As of December 31, 2024, Escapology was a co-guarantor for a bank loan balance of approximately $5.28 million and additional notes totaling about $20.55 million with the owner of the parent company. While the affiliates are current on payments, the parent company has the ability to defer interest on the subordinated note, and $1.46 million of accrued interest was deferred and added to the principal in 2024. This implies a substantial debt structure and reliance on affiliate performance. Escapology does extend credit terms to its franchisees but has not found it necessary to record an allowance for credit losses.
Financing Details
Escapology does not offer any direct or indirect financing to its franchisees. Franchisees are responsible for securing their own financing through third parties. Escapology also does not guarantee any notes, leases, or obligations for its franchisees.
Performance Metrics
Total US Locations
75
Franchised Units
63
Corporate Units
12
Avg Square Footage
3,900
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Escapology had one legal matter in California, which was resolved on January 19, 2023. This involved a Consent Order with the California Department of Financial Protection and Innovation. Escapology was accused of violating the California Franchise Investment Law by failing to disclose material facts related to two negotiated sales, selling franchises with different material terms, and not maintaining disclosure records for past sales. Without admitting fault, Escapology voluntarily entered into the Consent Order, agreeing to comply with the law and pay a penalty of $12,500. No other litigations are pending or required to be disclosed.
Bankruptcy History
Escapology has no bankruptcy history to disclose for itself or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew the Escapology franchise agreement, franchisees must be in full compliance with the agreement, having committed no more than three defaults during the current term. They must provide written notice to Escapology between three and six months before the term expires. Additionally, franchisees must sign a new franchise agreement (which may have different terms), pay a $5,000 successor agreement fee, maintain the location's current trade dress and standards, execute a general release of claims, and comply with all then-current qualifications, facility standards (including remodeling), and training requirements.
Training & Support Program
Franchisor Assistance
Escapology provides extensive support to its franchisees. Before opening, Escapology assists with site selection and approval, and provides specifications for the facility's layout, design, appearance, and signage. Franchisees receive eight escape games as part of their initial fee, along with game introduction videos, manuals, CAD layouts, 3D designs, and promotional materials. Escapology loans an operations manual and provides lists of required equipment and approved suppliers. Initial training, included for up to three individuals, takes place at Escapology's headquarters in Orlando, Florida, and/or an affiliate-owned location, and includes virtual components. Escapology also provides a trainer on-site for two days during the grand opening, with franchisees covering travel costs. After opening, Escapology offers mandatory and optional additional training, including an annual business meeting or convention. Remedial on-site training and individualized assistance via phone, video, or email are available upon request, though additional fees apply for remedial on-site training. Escapology also provides samples of advertising materials, conducts inspections of facilities and services, and provides updated lists of required equipment and suppliers. Additionally, Escapology may recommend minimum and maximum prices for products and services and approves all franchisee-proposed advertising materials.
Initial Training Hours
151
Training Location
Orlando, Florida, and online
Ongoing Support
After opening, Escapology provides ongoing support to its franchisees through various channels. This includes offering mandatory and optional additional training programs, such as an annual business meeting or convention, for which franchisees cover travel and incidental costs. Upon request, Escapology offers remedial on-site training and assistance, though franchisees must reimburse the trainer's per diem fee and travel expenses. Individualized assistance is also available via telephone, video conferencing, and email within reasonable limits. Escapology periodically provides samples of digital artwork, advertising, and promotional materials. The franchisor conducts regular inspections of the franchised business, including escape rooms, services, and premises, to ensure compliance with standards. Escapology also provides written specifications for required equipment, products, and services, along with updated lists of approved suppliers. Additionally, Escapology may recommend minimum and maximum prices for products and services and approves all franchisee-developed advertising and promotional materials.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Exclusive
Territory Size Requirements
Escapology grants franchisees an exclusive territory. The size of this territory is determined by Escapology and is generally a half-mile radius from the franchised location in highly populated urban areas or a five-mile radius for locations in less densely populated areas. For multi-unit development agreements, territories are similarly defined using a mapping system or zip codes, with a radius based on population.
Staffing Notes
Escapology requires franchisees to employ a dedicated and competent manager to provide full-time supervision of the facility, and this manager must complete Escapology's training program. If the manager is replaced, the new manager must also complete training. Escapology may require the manager to sign a confidentiality agreement and, if permitted by state law, a non-compete agreement. All other personnel who will access proprietary and confidential information must also sign a Non-Disclosure/Non-Competition Agreement. Escapology provides standards for employee qualifications and training.