Risk Score
Pending analysis
Investment Range
$60,105 - $74,150
Franchise Fee
$30,000
Total US Locations
1
Business Summary
Smash Zone operates entertainment centers where customers can smash common household items using various instruments like bats and sledgehammers in a safe environment. This experience may be followed by a brief meditation session. Each Smash Zone operates from a single fixed location within a designated territory and can also provide temporary pop-up locations for events like corporate functions.
Corporate History
Smash Zone, LLC was established as a Wisconsin limited liability company on April 28, 2021. The company launched its first corporate-owned center in Milwaukee, Wisconsin, in April 2021. Smash Zone began offering franchises on August 16, 2024. The company does not have any predecessors or a parent company.
Financial Overview
Investment Range
$60,105 - $74,150
Franchise Fee (Low)
$30,000
Franchise Fee (High)
$30,000
Royalty %
7%
Equipment Costs (Low)
$24,500
Equipment Costs (High)
$28,000
Audited Financials
No
Offers Financing
No
Financing Details
Smash Zone does not offer direct or indirect financing to its franchisees. Additionally, Smash Zone does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
1
Franchised Units
0
Corporate Units
1
Franchising Since
2024
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
Smash Zone has no litigation to report in Item 3 of its Franchise Disclosure Document. The company states that no litigation is required to be disclosed in this item.
Bankruptcy History
Smash Zone has disclosed bankruptcy history for two of its officers. Glenda Hovey, an owner and president, filed for Chapter 7 personal bankruptcy on September 22, 2020, which was discharged on December 21, 2020. Scott Hovey, the vice president, filed for Chapter 7 personal bankruptcy on February 15, 2016, which was discharged on May 25, 2016.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Smash Zone franchisees must provide written notice of their intent to renew at least 180 days before the initial term expires. At that time and continuously thereafter, franchisees and their owners must be in full compliance with the franchise agreement and all other ancillary agreements. Franchisees must also secure the legal right to their center facility and location for the entire renewal term, or obtain approval for a new location. They are required to update their facility's condition, appearance, and functionality to meet Smash Zone's current standards for new centers, pay a renewal fee of $5,000, and sign the then-current form of the franchise agreement. Additionally, owners and their spouses must sign current individual guaranty agreements, complete any designated additional training, and execute a general release of claims against Smash Zone.
Training & Support Program
Franchisor Assistance
Smash Zone provides several forms of assistance to its franchisees. This includes granting the right to operate a center and defining the designated territory once a suitable location is approved. Smash Zone provides access to confidential operations manuals and reviews and approves proposed sites for centers, as well as lists of approved suppliers, signage, equipment, furniture, and fixtures. Smash Zone also identifies the franchisee's center on its corporate website. Initial training for the managing owner is provided in Milwaukee, Wisconsin, over a two-week period, covering 24 hours of instruction. Post-opening assistance focuses on communicating operating and marketing standards, approving marketing materials, and designating approved vendors. Smash Zone does not assist with the hiring or training of franchisee employees.
Initial Training Hours
24
Training Location
Milwaukee, Wisconsin
Ongoing Support
Smash Zone, LLC provides ongoing support to its franchisees after the center opens. This support includes establishing, updating, and communicating operating standards, procedures, and System requirements related to Approved Services and Products, System Supplies, and marketing. Smash Zone, LLC also sets and communicates marketing standards, approving or disapproving franchisee marketing materials, and provides lists of approved vendors and suppliers. While Smash Zone, LLC may suggest pricing levels, franchisees determine their own prices. Franchisees are solely responsible for their own employee hiring and training. Smash Zone, LLC reserves the right to conduct unannounced inspections and audits of the franchisee's center and financial records. If requested by the franchisee or deemed necessary by Smash Zone, LLC due to operational non-compliance, supplemental on-site training is available for a fee of $250 per trainer per day, plus incurred expenses.
Franchise Requirements
Ideal Candidate Profile
Smash Zone, LLC seeks franchisees, or their designated Managing Owners, who are committed to active, hands-on supervision of the business. The ideal candidate should align with Smash Zone's core mission of providing a safe and fun environment for emotional release and healing, potentially followed by meditation, as the founder's personal story emphasizes helping others through a healing process and seeing a 'new spark' in customers. While no specific prior industry experience is explicitly required, candidates with backgrounds in advertising, marketing, or general management, similar to the founders, could be beneficial. Franchisees must be prepared to personally guarantee all obligations and adhere to strict confidentiality and non-competition covenants.
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
Limited
Territory Size Requirements
Smash Zone designates an area around the approved center location as the designated territory. There is no minimum size, and the territory's scope is generally the smaller of a 25-mile radius from the center in all directions, or an area defined by demographics and geography. Smash Zone may define territories using zip codes, boundary streets, highways, county lines, designated market areas, or other recognizable demarcations.
Staffing Notes
Each Smash Zone location requires the franchisee's Managing Owner to be personally responsible for the management and overall supervision of the center. Smash Zone, LLC recommends that the Managing Owner participates in the day-to-day management and on-site supervision. However, franchisees may hire an Operating Manager to supervise and manage the day-to-day on-site operations, provided the Operating Manager meets Smash Zone, LLC's minimum standards, completes the initial training program, and signs a confidentiality agreement. Every Smash Zone Center must always be managed and supervised on-site by either a Managing Owner or an Operating Manager. For franchisees owning multiple Smash Zone centers, each center must have a dedicated Operating Manager present on-site. All employees with access to confidential information, including managers, must sign a confidentiality agreement. Franchisees are solely responsible for hiring, training, and supervising their employees, and ensuring all staff wear approved branded uniforms and operate according to System standards and manuals.