INDUSTRY BENCHMARK · 25 SYSTEMS · FISCAL 2023–2025
Are recreation & entertainment franchises a good investment?
Across 16 recreation & entertainment franchise systems, the median system's exit rate in its latest fiscal year was 2.0%, and its opening rate 19.5%. Pooled across systems, with no system counting for more than 20% of the weight, the exit rate was 3.6%. CRUISE PLANNERS alone is 74% of the sector's franchised base. Median franchise fee: $50K; median royalty: 7.0%; median total investment: $483K–$797K.
There is no official “recreation & entertainment franchise failure rate.” What franchisors must disclose, in the Item 20 outlet tables of the FDD, is how many franchised outlets were terminated, not renewed, or “ceased operations — other reasons” each year. The exit rate here is that count divided by franchised outlets open at the start of a single fiscal year. It counts exits for any reason (some are retirements, sales, relocations or non-renewals) and misses struggling units that were sold as transfers.
2.0%
16 systems · latest fiscal year each
3.6%
CRUISE PLANNERS alone is 74% of the sector's franchised base.
19.5%
513 outlets opened in total
25
FDD filed within 24 months
4,342
at latest fiscal year end
$50K
FDD Item 5
7.0%
FDD Item 6
$483K–$797K
FDD Item 7
20/25
systems disclosing an FPR
SOURCE: FDD ITEM 20 OUTLET TABLES FILED WITH STATE REGULATORS (MINNESOTA CARDS) · 25 SYSTEMS · 25 FILINGS · FISCAL 2023–2025
| Signal | Brand | Verdict |
|---|---|---|
| STRONGEST RECORD | American Poolplayers Association | Strong |
| STRONGEST RECORD | URBAN AIR ADVENTURE PARK | Strong |
| STRONGEST RECORD | CRUISE PLANNERS | Steady |
| WEAKEST FILED RECORD | Pump It Up | Weaker |
| WEAKEST FILED RECORD | Pinot's Palette | Weaker |
| WEAKEST FILED RECORD | ALTITUDE TRAMPOLINE PARK | Weaker |
VERDICTS FROM EACH BRAND'S OWN FDD ITEM 20 FILING · METHODOLOGY
Recreation & Entertainment franchise questions, answered from the filings
How many recreation & entertainment franchised outlets leave their systems each year?
There is no official failure rate. FDD Item 20 tables report how many franchised outlets were terminated, not renewed, or "ceased operations — other reasons" each year. Across 16 recreation & entertainment systems, the median system's exit rate in its latest fiscal year (fiscal 2023–2025) was 2.0%; pooled across systems, with no system counting for more than 20% of the weight, it was 3.6%. CRUISE PLANNERS alone is 74% of the sector's franchised base. Not every exit is a failure: some are retirements or sales.
How much does a recreation & entertainment franchise cost?
Across the latest FDD filings of 25 recreation & entertainment systems, the median initial franchise fee is $50K (Item 5) and the median total investment range is $483K–$797K (Item 7).
What royalty do recreation & entertainment franchises charge?
The median ongoing royalty across 25 recreation & entertainment franchise systems is 7.0% of gross sales, per Item 6 of their latest FDD filings.
Are recreation & entertainment franchises growing or shrinking?
In each system's latest Item 20 fiscal year (fiscal 2023–2025), the median recreation & entertainment system opened new franchised outlets at 19.5% of its starting base and lost 2.0% to exits. For the median system, openings outpaced exits.
What is the healthiest recreation & entertainment franchise?
Of the recreation & entertainment systems rated from their FDD Item 20 tables, American Poolplayers Association has the strongest record (verdict: Strong). A verdict describes the filed record, not a recommendation to buy.
A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing the numbers, including talking you out of a bad deal.