Play Street Museum
Play Street Museum offers upscale children's museums focusing on education and creative play for kids under eight. Known for providing stimulating environments through dramatic and creative activities, it operates in the family entertainment and educational franchise sector.
Play Street Museum franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a 'Play Street Museum' location ranges from $482,741 to $759,920. This includes $283,491 to $380,579 that must be paid to the franchisor or its affiliates. [p.1]
What is the initial franchise fee?
The initial franchise fee is $40,000 [p.64], which is due and payable upon signing the Franchise Agreement [p.10]. This fee is nonrefundable except as specified in certain circumstances related to area development agreements [p.21, p.17] and is fully earned when paid [p.64].
What are the ongoing royalty and advertising fees?
Mandatory minimum payments include royalty fees that must be paid regardless of sales levels [p.4]. Additionally, you must contribute to the Brand Fund by ACH at the same time as royalty fees or in such other manner as specified [p.29], which is used for maintaining and enhancing the System's image [p.87].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to [p.101], you cannot transfer your franchise to a third party who will operate a similar business without PSM Worldwide, LLC's permission. This means neither you nor any principal of yours can transfer the franchise to another party for them to operate under a different agreement or system.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement on various grounds, including if the franchisee fails to acquire or lease a site for the Franchised Business within the required time [p.33], or if any other default or termination condition stated in the Franchise Agreement is breached [p.191]. However, terminating the agreement without reasonable cause as defined by Virginia law may be unlawful [p.193].
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a new principal after a transfer, you must have adequate financial resources and capital to operate the licensed location [p.99]. This includes possessing a good moral character, business reputation, and credit rating, along with prior related business experience or evidence of aptitude and ability to operate the licensed location. However, specific net worth or liquid capital requirements are not detailed in these excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, or other competitive brands controlled by them [p.36, p.36, p.59]. This also applies if you are an Area Developer [p.36].
What training and ongoing support does the franchisor provide?
The franchisor provides an extensive initial training program including web-based training, seven weeks of virtual training, five days of in-person training at their headquarters or another location, and up to three days of on-site support. For the first two locations only, they will cover the cost of instructors and materials for required initial and additional refresher courses, seminars, and training programs. [p.35] Additionally, ongoing support is provided through regular training as needed to accommodate new franchisees, supervised by Courtney Muccio, CEO with relevant experience. [p.35]
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to disclose actual or potential financial performance information about its outlets under certain conditions, as detailed in Item 19 [p.47]. However, other than the financial performance representation specified in Item 19, the franchisor does not make any financial performance representations and does not authorize its employees or representatives to make such representations either orally or in writing [p.50].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only those items, products, and services that the franchisor has expressly approved in writing and which meet their current standards as established in the Manual or otherwise. You must not sell any other kind of service or product without first obtaining written consent [p.41]. Additionally, you may have to buy or lease certain items from the franchisor or a limited group of suppliers they designate; these items might be more expensive than similar ones available elsewhere [p.3].