Slick City logo

Slick City Franchise

Audited Financials
RecreationEst. 2023Chesterfield, MO
www.slickcity.com

Risk Score

Pending analysis

Investment Range

$1,913,100 - $4,865,700

Franchise Fee

$50,000

Total US Locations

9

Business Summary

Slick City operates indoor action parks featuring dry slides, soft play areas, air courts, and various other attractions. Each park also includes a city café. These facilities cater to both everyday visitors and special events, providing entertainment and physical activities primarily for families with young children.

Corporate History

Slick City Franchise Group LLC was formed on January 4, 2023, as a Delaware limited liability company. The company began offering Slick City franchises on August 15, 2023. While Slick City Franchise Group itself does not operate the type of business being franchised, its affiliate, Slick City LLC, formed in November 2020, has been operating a Slick City park since June 2022 and owns the brand's trademarks. Another affiliate, Slick Slide LLC, formed in January 2019, is responsible for developing and manufacturing the core attractions.

Financial Overview

Investment Range

$1,913,100 - $4,865,700

Franchise Fee (Low)

$50,000

Franchise Fee (High)

$75,000

Royalty %

7%

Marketing %

1%

Equipment Costs (Low)

$1,029,600

Equipment Costs (High)

$1,564,700

Working Capital

$163,900

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Slick City Franchise Group's financial condition, as shown in its audited financial statements, indicates a negative shareholders' equity, with a deficit of $(19,676) in 2024 and $(140,584) in 2023. This calls into question Slick City Franchise Group's financial ability to provide services and support to its franchisees, as noted in the FDD's Special Risks section. The Independent Accountant's Audit Report provides an unqualified opinion.

Financing Details

Slick City Franchise Group does not offer direct financing. However, it recommends two third-party financing vendors: Benetrends Financial and KLC Financial. Benetrends Financial can assist with obtaining Small Business Administration (SBA) loans and Rollover for Business Startups (ROBS). KLC Financial offers financing for equipment and fixtures, including attractions, up to $5 million, with an average term length of 60 months, secured by collateral. Owners with over 15% ownership in the franchise will be required to personally guarantee the loan. KLC Financial does not impose a prepayment penalty. Slick City Franchise Group does not receive any compensation from these referrals.

Performance Metrics

Total US Locations

9

Franchised Units

0

Corporate Units

9

Avg Square Footage

35,000

Franchising Since

2023

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew, Slick City franchisees must give advance notice to the franchisor between 180 and 365 days before the agreement expires. They must be in compliance with all contractual obligations to the franchisor and third parties, and have substantially complied with the franchise agreement throughout the term. Franchisees are also required to renovate their business to meet the franchisor's then-current standards, sign the franchisor's then-current form of franchise agreement and related documents (including a personal guaranty), pay a renewal fee of 25% of the then-current Initial Franchise Fee, and execute a general release of any and all claims against the franchisor and its affiliates, unless prohibited by applicable law.

Training & Support Program

Franchisor Assistance

Slick City Franchise Group provides significant support to its franchisees. Before opening, Slick City Franchise Group reviews and advises on potential locations, offers guidance on the layout, design, and build-out of the business, and provides lists of specifications for equipment and approved suppliers. Franchisees receive access to the confidential System Standards & Processes Manual and a complimentary initial training program for up to four management-level employees, including the Principal Executive. Slick City Franchise Group also offers advice on pre-opening business plans and market introduction plans, and provides 1-2 days of on-site support during the business opening. After opening, Slick City Franchise Group offers ongoing advice by phone or electronic communication for business development and problem-solving, provides recommended pricing for products and services upon request, and recommends administrative, bookkeeping, accounting, and inventory control procedures. Slick City Franchise Group also administers the Brand Fund and maintains the corporate website, which includes information about the franchisee's business.

Initial Training Hours

79

Training Location

Chesterfield, Missouri, and at the franchisee's park, potentially remotely

Ongoing Support

Slick City Franchise Group provides ongoing support to its franchisees, including advice by telephone or electronic communication regarding business improvement and problem resolution. Recommended prices for products and services are provided upon request, and recommended administrative, bookkeeping, accounting, and inventory control procedures are shared. Slick City Franchise Group also administers the Brand Fund and maintains a corporate website that includes the franchisee's business information. In-person support is available upon request for a fee.

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

Protected

Territory Size Requirements

Each Slick City territory will cover a population of at least 150,000 people, though it may be smaller in high-tourism areas. Territories are typically defined by census tracts, but may also use other geographical boundaries like a radius from the park, county lines, or street boundaries.

Staffing Notes

Slick City Franchise Group requires that each business be supervised on-site by the Principal Executive or a trained general manager. The franchisor also specifies that franchisees must hire a sufficient number of personnel to handle their business volume and comply with System Standards regarding staffing at slides. Franchisees are solely responsible for all hiring, training, scheduling, and management of their staff.