Play Street Museum Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$448,907 - $698,595
Franchise Fee
$30,000
Total US Locations
24
Business Summary
Play Street Museum offers franchises for children's museums that are clean, upscale, and educationally focused. These locations are primarily targeted at children eight years old and under, providing entertainment in a stimulating learning environment through creative and dramatic play. Play Street Museum operates as an 'edutainment' concept, delivering high-quality play and educational experiences to young children and their families within an upscale, thematic, and interactive setting. Play Street Museum locations provide public open play, private parties, special events, classes, and also include upscale retail spaces.
Corporate History
PSM Worldwide, LLC was formed in Texas on July 18, 2016, and began offering Play Street Museum franchises in the fourth quarter of 2016. While the franchisor itself does not directly operate Play Street Museum locations, its affiliate, PSM Ventures, LLC, has been operating company-owned Play Street Museum locations since 2014. Another affiliate, PSM Holdings, LLC, formed in 2015, owns the proprietary marks used by the brand. Additionally, PSM Supply, LLC, formed in 2022, manufactures and sources proprietary retail and operational items for Play Street Museum franchisees.
Financial Overview
Investment Range
$448,907 - $698,595
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$40,000
Royalty %
6%
Marketing %
7%
Equipment Costs (Low)
$286,657
Equipment Costs (High)
$460,095
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Item 4 of the FDD highlights concerns about Play Street Museum's financial condition, stating that it 'calls into question the franchisor's financial ability to provide services and support to you.' The financial statements in Item 21 show that Play Street Museum has had significant and increasing members' deficits (negative equity) for the past three fiscal years, reaching over $1.15 million in 2024. The company has also consistently reported operating losses, with a loss of over $515,000 in 2024. Furthermore, Play Street Museum has relied on substantial loans from its members, totaling $625,000 in 2024, to support its operations, indicating a dependence on internal funding to cover costs.
Financing Details
Play Street Museum does not offer any direct or indirect financing to its franchisees. Additionally, Play Street Museum does not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
24
Franchised Units
22
Corporate Units
2
Avg Square Footage
3,750
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Play Street Museum has no litigation history to disclose in Item 3 of its Franchise Disclosure Document. This means Play Street Museum has not been involved in any material litigation, including administrative, criminal, or civil actions alleging violations of franchise, antitrust, or securities laws, or other forms of fraud or unfair practices that are required to be reported.
Bankruptcy History
Play Street Museum has no bankruptcy history to disclose in Item 4 of its Franchise Disclosure Document. This indicates that neither the franchisor, its affiliates, nor any of its key management personnel have filed for bankruptcy within the last 10 years, which is a positive indicator of Play Street Museum's financial stability.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Play Street Museum franchisees must provide written notice of their intent to renew at least nine months, but no more than one year, before the current term ends. They must remodel and refurbish their Play Street Museum location to meet the franchisor's then-current standards for new locations and ensure they have been in material compliance with all terms of the franchise agreement and other contracts with Play Street Museum. Franchisees must have also timely met all financial obligations to Play Street Museum, its affiliates, and vendors throughout the term. Before renewal, they must execute a new franchise agreement, which may have different terms, and pay a renewal fee equal to 25% of the then-current initial franchise fee (but not less than $10,000). Franchisees and their personnel must also meet current qualification and training requirements, provide satisfactory evidence of the right to possess the approved site for the renewal term, and sign a general release of claims against Play Street Museum.
Training & Support Program
Franchisor Assistance
Before a Play Street Museum location opens, the franchisor provides an initial training program for the franchisee and their management team at a designated location. Play Street Museum also furnishes prototype design and equipment layout plans, offers site selection and lease review assistance, and sends a representative to the location's opening if the franchisee operates two or fewer locations. Franchisees receive a confidential operating manual. After opening, Play Street Museum offers additional training programs as needed and provides periodic assistance with marketing, management, and operations, including visits from an accounting manager. The franchisor also administers a system-wide brand marketing fund.
Initial Training Hours
44
Training Location
Plano, Texas, or at a company-owned location, or remotely via conference or independent study
Ongoing Support
After a Play Street Museum location opens, franchisees receive ongoing support through various means. Play Street Museum makes additional training programs available as deemed appropriate. The franchisor provides periodic assistance with marketing, management, and the overall operation of the franchised business. This includes offering the services of certain representatives, such as an accounting manager, who will periodically visit the franchisee's location to offer advice. Additionally, Play Street Museum administers the Brand Fund to support system-wide marketing initiatives.
Franchise Requirements
Ideal Candidate Profile
Play Street Museum seeks franchisees or their designated Operating Partner who can devote full-time energy and best efforts to managing the location. For corporate, partnership, or other entity franchisees, all owners are required to sign a personal guarantee. An approved Operating Partner must supervise the location, possess a good business reputation in the industry, successfully complete Play Street Museum's training program, and be proficient in English. The Operating Partner is not required to have an equity ownership interest in the franchisee entity.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Territory Size Requirements
Play Street Museum territories vary in size based on the specific location of the franchised business, as well as the local population density and demographics. However, a typical Protected Territory is designed to encompass an area with a minimum population of 10,000 children aged 0-9, based on the most recent U.S. Census data.
Staffing Notes
Play Street Museum franchisees or their designated Operating Partner are required to devote full-time efforts to managing the location, and this Operating Partner must successfully complete the franchisor's initial training program. The Operating Partner is also certified to train other employees on their duties. If the Operating Partner ceases active participation, a qualified replacement must be enrolled in training within 30 days. Play Street Museum locations must maintain a competent, trained staff sufficient to serve customers, including at least one manager on duty at all times, ensuring good customer relations and professionalism. Employees must comply with Play Street Museum's prescribed dress code and personal appearance standards.