Risk Score
Pending analysis
Investment Range
$429,100 - $1,121,100
Franchise Fee
$32,000
Total US Locations
3
Business Summary
Safari Run Enterprises offers a franchise to establish and operate an entertainment and fitness center focused on healthy living for children aged 3 to 13. These centers provide fun, open play, host parties, run camps, and offer fitness classes. Each Safari Run location also features an area for selling toys and gifts, and a kitchen where food can be ordered and brought in for parties.
Corporate History
Safari Run Enterprises, LLC was formed in California on May 28, 2009, with the purpose of offering Safari Run franchises. The company began offering franchises in the same year, 2009. Safari Run Enterprises does not operate the entertainment and fitness centers itself, but its affiliate, Safari Run LLC, which was formed in 2005, owns and operates two such centers in San Mateo and Sunnyvale, California. The affiliate has not offered franchises in any business.
Financial Overview
Investment Range
$429,100 - $1,121,100
Franchise Fee (Low)
$32,000
Franchise Fee (High)
$40,000
Royalty %
6%
Equipment Costs (Low)
$350,000
Equipment Costs (High)
$900,000
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Safari Run Enterprises is in a positive financial position. The company has seen a significant increase in net income, moving from a loss in 2021 to a profit of $40,463 in 2023. Its cash balance has also grown substantially, from $8,127 in 2021 to $73,486 in 2023, with total assets rising to $76,553 in 2023. The members have committed to continue funding Safari Run Enterprises as needed, reinforcing its stability. The auditors issued an unqualified opinion, indicating that the financial statements present fairly the company's financial position and results of operations.
Financing Details
Safari Run Enterprises does not offer any direct or indirect financing to its franchisees. The company also does not guarantee any lease or other financial obligations for franchisees. Therefore, Safari Run franchisees are responsible for arranging their own funding through external sources.
Performance Metrics
Total US Locations
3
Franchised Units
1
Corporate Units
2
Avg Square Footage
5,500
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Safari Run Enterprises has no litigation cases to report in this Disclosure Document. The company states that no litigation is required to be disclosed, indicating a clean legal record for the franchisor.
Bankruptcy History
Safari Run Enterprises has no bankruptcy history to disclose. The company states that no bankruptcy is required to be disclosed in this item.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Safari Run franchisees must meet several conditions. They must have fully complied with all provisions of the Franchise Agreement, possess the right to maintain their approved location (or an approved substitute) for the renewal term, and have made necessary capital expenditures to keep their center uniform with the Safari Run System. Franchisees must have satisfied all monetary obligations to Safari Run Enterprises and not be in default of any agreement. They must also provide timely written notice of their intent to renew, sign Safari Run Enterprises' then-current Franchise Agreement (which may have different terms), comply with current training requirements, and sign a general legal release of claims against Safari Run Enterprises.
Training & Support Program
Franchisor Assistance
Before a Safari Run franchise opens, Safari Run Enterprises assists with site selection guidelines and evaluates proposed locations. They designate the franchisee's exclusive operating area, review and approve the lease agreement, and provide specifications for remodeling and equipping the location, along with a list of required supplies. Safari Run Enterprises also provides an initial training program and on-site assistance for opening. Franchisees receive a copy of the Safari Run Confidential Operations Manual. After opening, Safari Run Enterprises does not grant other franchises in the franchisee's territory and maintains the brand's website. They also offer operations assistance, ongoing training as needed, and approve local advertising materials. Additionally, Safari Run Enterprises may provide periodic advice via phone, email, fax, and newsletters, conduct periodic visits for consultation and guidance, and issue modifications to the Confidential Operations Manual.
Initial Training Hours
102
Training Location
Safari Run Enterprises' affiliate headquarters in San Mateo, California, and/or the franchisee's own franchised entertainment and fitness center.
Ongoing Support
After opening, Safari Run Enterprises provides ongoing support through operations assistance and additional training as deemed necessary. This includes periodically offering general advice and guidance via telephone, email, facsimile, and newsletters on various business matters such as operational methods, accounting procedures, and marketing strategies. Safari Run Enterprises representatives may also conduct periodic, announced or unannounced, in-person, virtual, or mystery shopper visits to the franchised center for consultation and guidance, often followed by written reports suggesting improvements. Additionally, franchisees and their managers are required to attend refresher training programs periodically, up to two 2-day sessions annually, which are held at Safari Run Enterprises' headquarters or another designated location, with travel expenses borne by the franchisee.
Franchise Requirements
Ideal Candidate Profile
Safari Run Enterprises seeks franchisees who are not passive investors but are actively engaged in the operations of their franchise. The ideal candidate, or their designated manager, must be under direct, full-time, day-to-day supervision of the center. Franchisees, if individuals, may be required to be the designated manager. If a business entity, an owner may be required to be the designated manager. Candidates must possess good moral character, sufficient business experience, aptitude, and financial resources. They should not own or have affiliates who own interests in, or perform services for, a competitive business.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
full-time
Territory Type
exclusive
Territory Size Requirements
Safari Run franchisees receive an exclusive territory, referred to as an 'Area of Primary Responsibility.' This area is defined as not less than a three-mile circumference from the approved location. Safari Run Enterprises determines the boundaries of this area based on various factors, including population, median population age, proximity to competitors and other franchisees, and natural, physical, or political boundaries.
Staffing Notes
Safari Run Enterprises requires that the franchised entertainment and fitness center always be under the direct, full-time, day-to-day supervision of a designated manager who has satisfactorily completed Safari Run Enterprises' initial training program. Franchisees are responsible for training their own employees and other management personnel. All employees and independent contractors who will work on the premises where children may be present must undergo criminal background checks and child abuse registry checks. Franchisees must comply with all applicable labor and employment laws, ensuring timely and full payment to employees and independent contractors. Safari Run Enterprises emphasizes that it is not an employer of, and does not control, the franchisee's employees or contractors.