LARKS logo

LARKS Franchise

Audited Financials
RecreationEst. 2020Southlake, TX
www.larksentertainment.com

Risk Score

Pending analysis

Investment Range

$1,850,000 - $4,125,000

Franchise Fee

$20,000

Min Cash Required

$100,000

Total US Locations

3

Business Summary

LARKS, LLC offers franchises for family entertainment centers that combine a restaurant with various entertainment options like mini golf, shuffleboard, arcade games, and children's funhouse activities. LARKS Entertainment Centers aim to attract diverse age groups, with mini golf as a required anchor activity. The company also grants area development rights for operating multiple LARKS locations.

Corporate History

LARKS, LLC was organized as a Florida limited liability company on March 2, 2020, operating under the names Larks Entertainment and LARKS. Its parent company is Oak Capital Group, LLC. The company began offering franchises for LARKS locations on July 26, 2022. While LARKS, LLC itself does not operate company-owned locations, its affiliates are expected to do so. The CEO, Curt Skallerup, brings experience from co-founding the Altitude Trampoline Park franchise system, an entertainment-focused franchise.

Financial Overview

Investment Range

$1,850,000 - $4,125,000

Franchise Fee (Low)

$20,000

Franchise Fee (High)

$40,000

Minimum Cash Required

$100,000

Royalty %

7%

Equipment Costs (Low)

$1,510,000

Equipment Costs (High)

$3,400,000

Working Capital

$100,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

LARKS, LLC incurred a net loss of $1,311,146 for the year ended December 31, 2024, resulting in total liabilities exceeding total assets by $426,824. These factors raise uncertainty about LARKS, LLC's ability to continue operations. However, management has assessed the situation and believes this concern can be alleviated by collecting outstanding member contributions, a commitment from members for additional capital infusions (equity or loans), anticipated revenue from franchise sales, and intentions to control and reduce operating expenses as needed.

Financing Details

LARKS, LLC does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any notes, leases, or other financial obligations for franchisees.

Performance Metrics

Total US Locations

3

Franchised Units

1

Corporate Units

2

Avg Square Footage

17,000

Franchising Since

2022

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew their LARKS, LLC franchise agreement, franchisees must notify the franchisor between 12 and 24 months before the agreement expires. They must not be in default, be current on all payments to the franchisor, its affiliates, and suppliers, and comply with all training requirements. Additionally, franchisees are required to renovate their location to meet the franchisor's then-current standards, maintain the right to possession of their premises (including all necessary licenses like a liquor license), and sign the franchisor's current successor franchise agreement, which may contain materially different terms. Finally, the franchisee and all guarantors must sign a general release of claims.

Training & Support Program

Franchisor Assistance

Before a LARKS Entertainment Center opens, LARKS, LLC provides site selection criteria and guidance, along with prototype architectural plans (under a separate agreement) that can be adapted to the franchisee's site. The franchisor also offers consultation at its home office regarding construction and operation, provides access to an Operations Manual, and conducts a 6-day pre-opening training program for owners and the general manager. A LARKS representative also provides 2 to 4 days of on-site assistance during the opening. After opening, LARKS, LLC continues to offer consultation, updates the Operations Manual, and may provide additional required or optional training programs (which may incur a fee). The franchisor conducts inspections of locations and financial records, manages a Brand Development Fund, and approves all franchisee advertising materials. Franchisees are required to use accounting services from a LARKS affiliate for their first year and must use specific point-of-sale and reservation systems.

Initial Training Hours

88

Training Location

Corporate office in Dallas, Texas and on-site at the franchisee's location

Ongoing Support

After opening their LARKS Entertainment Center, franchisees receive ongoing support through consultation and advice at the franchisor's offices upon request. LARKS, LLC continuously modifies and updates its Operations Manual with changes in business practices, authorized products, and operational procedures. The franchisor may offer additional optional or mandatory training programs and seminars, for which a fee may be charged. LARKS, LLC conducts periodic inspections of the franchisee's location, financial records, and evaluates services, sometimes using mystery shoppers. The franchisor manages the Brand Development Fund and approves all advertising, signage, and promotional materials used by franchisees. For the first year of operation, franchisees are required to use accounting services provided by a LARKS affiliate, and throughout the agreement term, they must maintain specific accounting systems and provide monthly financial reports. If a franchisee fails to provide timely or accurate reports, LARKS, LLC reserves the right to require re-engagement of its affiliate's accounting services or an approved accounting firm.

Franchise Requirements

Ideal Candidate Profile

LARKS, LLC seeks individuals or entities as franchisees whose owners are willing to commit to personal guarantees, confidentiality, and non-compete agreements. While direct personal involvement in the day-to-day operation of the franchise is not mandated, a qualified General Manager is required and must successfully complete the franchisor's initial training program. The Principal Owner, if the franchisee is an entity, is designated as the primary contact with the franchisor and has full authority but is not required to be a majority owner or complete the initial training. Ideal candidates are expected to demonstrate the financial capacity for the substantial initial investment required to open a LARKS Entertainment Center.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

Absentee Allowed

Territory Type

non-exclusive

Staff Count

40

Territory Size Requirements

LARKS, LLC grants franchisees a Protected Area that is typically defined by zip codes and usually has a radius of approximately 1 mile from the approved location. In areas with low population density, the franchisor may grant a larger Protected Area, such as a 2- or 3-mile radius.

Staffing Notes

Each LARKS Entertainment Center is expected to employ approximately 40 individuals. Franchisees are solely responsible for all employment decisions, including hiring, firing, training, wage and hour compliance, record-keeping, supervision, and discipline. A General Manager is required and must successfully complete the franchisor's initial training prior to the business opening. Any subsequent General Managers must enroll in training within 14 days of employment and complete it within 120 days. All staff involved in food handling must obtain and maintain state-required alcohol and food handling certifications. While LARKS, LLC provides training assistance, it does not exert direct or indirect control over employee working conditions, except as necessary to protect the quality of the LARKS System and its products and services.