Risk Score
Pending analysis
Investment Range
$187,485 - $267,235
Franchise Fee
$35,000
Total US Locations
51
Business Summary
Shrunk 3D operates a franchised mobile store that sells 3D printed products and offers 3D scanning and printing services. Shrunk 3D franchisees market these services to both residential and commercial customers at various locations and events, including offices, festivals, sporting events, schools, carnivals, and government buildings. The business model positions Shrunk 3D to compete with other entertainment and novelty-creation services like photo booths and face-painters.
Corporate History
Shrunk 3D, Inc. was incorporated in South Carolina on April 20, 2019. The company began offering Shrunk 3D franchises in May 2021. Prior to franchising, Shrunk 3D started building and selling its proprietary 3D scanning booths in August 2020 and has been engaging vendors to create 3D printed figurines since August 2020. Shrunk 3D has no predecessors or parent companies and does not operate any company-owned booths.
Financial Overview
Investment Range
$187,485 - $267,235
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$49,900
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$125,000
Equipment Costs (High)
$125,000
Working Capital
$12,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Shrunk 3D appears to be in a healthy financial position, demonstrating strong financial performance and stability. For the fiscal year ending December 31, 2024, the company reported positive working capital of $1,930,234, indicating sufficient liquid assets to cover its short-term liabilities. Shrunk 3D also achieved a net income of $1,288,579 and generated $1,751,217 in cash from its operating activities, representing significant growth and consistent profitability from the previous year. The independent auditor's report for 2023 and 2024 does not contain any going concern qualifications, suggesting that there are no substantial doubts about Shrunk 3D's ability to continue its operations.
Financing Details
Shrunk 3D does not offer direct or indirect financing to its franchisees. The company also does not guarantee any notes, leases, or other obligations for its franchisees. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
51
Franchised Units
51
Corporate Units
0
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Shrunk 3D has no litigation required to be disclosed in Item 3 of its Franchise Disclosure Document, indicating a clean legal history for the franchisor and its management.
Bankruptcy History
Shrunk 3D has no bankruptcy history required to be disclosed in Item 4 of its Franchise Disclosure Document, indicating no bankruptcy proceedings for the franchisor or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Shrunk 3D franchisees must provide timely notice of their intent to renew, be in good standing without default on any material provision, and be current on all amounts owed to Shrunk 3D and its affiliates. The Booth's equipment must be fully functioning and meet Shrunk 3D's current appearance and functionality standards. Franchisees must also have the right to continue using any permanent location they are operating from, if applicable, pay a successor agreement fee (15% of the then-current initial franchise fee or $5,000, whichever is greater), and have all guarantors sign a general release. They will also be required to sign Shrunk 3D's then-current franchise agreement, which may contain different terms from their original agreement.
Training & Support Program
Franchisor Assistance
Before opening, Shrunk 3D grants franchisees a license to use its marks and system, designates their territory, and sells and delivers the proprietary Booth with all necessary equipment and software. Shrunk 3D also provides access to its Operations Manual, initial display figurines, a menu board, digital graphics for marketing, and initial training for up to three individuals (franchisees cover travel and living expenses). Shrunk 3D will share information it has about potential locations or events in the territory and license the proprietary software needed to operate the business. After opening, Shrunk 3D continuously updates the System and provides consultation on operations as deemed appropriate. For an additional fee, Shrunk 3D may provide extraordinary management or support services and additional training. The company also provides training materials for franchisees to train their own staff, contacts customers for quality assurance, maintains a list of approved equipment and supplies, and may recommend retail prices. Shrunk 3D can establish franchisee advisory committees and sells replacement equipment and branded items or designates approved suppliers. In case of franchisee death or incapacity, Shrunk 3D may assign a manager to operate the business, and upon renewal, may require franchisees to update their Booth's exterior graphics or technology to meet current standards.
Initial Training Hours
16
Training Location
Charleston, SC and online
Ongoing Support
After opening, Shrunk 3D expects to be in regular contact with franchisees to discuss business operations and offer general assistance. Shrunk 3D may offer additional ongoing training for a fee. The company continuously updates its System as needed to maintain high quality. Shrunk 3D provides consultation as it deems appropriate, and offers extraordinary management or support services upon request (for a fee). Franchisees receive training materials to train their own managers, employees, and contractors, and Shrunk 3D may contact customers or vendors for quality assurance. The franchisor maintains a list of approved standards for equipment and supplies, may recommend retail prices, and can establish franchisee advisory committees. Shrunk 3D sells replacement equipment and display figurines, or designates suppliers for these items. In specific circumstances, such as a franchisee's death or incapacity, Shrunk 3D may assign a manager to operate the business. Upon renewal of the franchise agreement, franchisees may be required to replace or update their Booth's exterior graphics and technology to meet current standards.
Franchise Requirements
Ideal Candidate Profile
Shrunk 3D is seeking qualified individuals who are prepared to operate a mobile 3D scanning and printing business, offering services and products at various events and commercial locations. Ideal candidates are expected to be hands-on, either by personally dedicating their full time and effort to managing the business or by effectively delegating management to an approved, trained Key Manager. The Operating Principal, who must hold at least 10% equity in the franchise, will maintain ultimate authority and responsibility. Shrunk 3D also looks for individuals who are financially and operationally capable of developing multiple units, as opportunities for multi-territory development are offered. Franchisees must be diligent in marketing their mobile Booth to diverse customers, adhere to strict system standards, and ensure high-quality service, including hiring and training Certified Shrunk 3D 3D Scanning and Printing Services Specialists (SPSS).
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
hybrid
Owner Participation
supervisory
Territory Type
protected
Staff Count
1
Territory Size Requirements
Shrunk 3D territories are generally defined to include up to 70,000 households with an annual household income of at least $100,000. The precise geographic size of each protected territory can vary based on factors like population, tourism trends, event frequency, and location. Territories are typically delineated using zip codes, but Shrunk 3D may also use state or county boundaries, city limits, population, and drive time to define the area. If a franchisee requests and is granted a territory exceeding 70,000 households, an additional fee of $0.71 per extra household is charged.
Staffing Notes
Shrunk 3D franchisees are solely responsible for all employment decisions and functions of their Franchised Business, including hiring, firing, training, wage and hour compliance, record-keeping, supervision, and discipline. All employees must maintain appearance and cleanliness standards set by Shrunk 3D. Importantly, Shrunk 3D explicitly states that none of the franchisee's employees are considered Shrunk 3D's employees, and Shrunk 3D does not have direct or indirect power to hire, fire, or control franchisee employees, except as necessary to protect the quality of the Shrunk 3D System. All individuals operating the Booth must be Certified Shrunk 3D, Inc. 3D Scanning and Printing Services Specialists (SPSS), trained and certified by the franchisee using materials provided by Shrunk 3D. Franchisees must employ at least one SPSS, unless the franchisee is the sole operator of the Booth. Owners are responsible for day-to-day operations or may delegate to an approved manager.