Rage rooms also referred to as anger or smash rooms, are businesses where people can come to break things deliberately as a form of anger or stress management therapy. Note that this form of activity is a well-known way for people to relieve stress.
Customers are charged a premium to enter a room and smash objects, including mirrors, glasses, guitars, bottles, plates, gadgets, appliances, and other fragile objects. Even though it is still quite young, the rage room industry has grown exponentially in the last few years, particularly in the United States.
Still, a good number of people who start the rage room business end up losing too much money from operations or struggle to find the right clientele. Most often, a rage room business is limited by the number of rooms it can provide and fill, the customers it can draw and the rates it can charge for bookings.
Starting this sort of business from scratch can be a challenging process that warrants adequate capital and often provides a limited return on investment. Franchising, on the other hand, presents a turnkey system while also letting you take advantage of the stability and security of a detailed business concept, leverage their brand recognition, and adopt a proven business model.
By joining forces with a franchise, you will get unlimited access to unparalleled training opportunities and ongoing support so that you can put your business on the road to success. Investing in a franchise can offer you support, training, and pre-existing infrastructure.
However, the success of a franchise opportunity depends on multiple factors, including the brand’s business model, potential customer base, and profit margins. When considering a franchise opportunity, you’ll want to research the brand to understand how well it is known.
It is recommended that you take time to ask friends and neighbors about the franchise to measure the awareness of the brand in their desired market. Coupled with speaking with members of the community, you should conduct an internet search and check social media to assess the local awareness of the franchise.
This business is perfect for creative thinkers who can find ways to bring customers in the door and offer a unique experience that will encourage repeat business and positive word of mouth. Before buying a franchise, it is imperative to first verify that there are opportunities available in your desired geographic market. Here are the top franchise opportunities to consider.
Best Rage Room Franchises and Their Cost
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According to reports, this company is quite new to the business world and has had tons of franchisee inquiries. However, they are happy to expand across the country but would currently prefer to target across Texas. Gradually, Smash Therapy is becoming a household name, boast of a unique story, and also an enticing therapeutic aspect.
Smash Therapy LLC is always eager to support each franchisee and to honor the company’s heritage while building your dreams. Smash Therapy is currently looking for long-term partners who are an ideal fit for the company.
- $20,000 initial fee and monthly fees.
This company presents a one-of-a-kind opportunity that brings together three separate revenue streams under the same roof. iSMASH’s activities are unique, exciting, memorable, easy, and generate very high margins with a low initial investment.
Note that with your staff of retail associates, usually about 6-10 part-timers per location, you’ll be working each day to establish unique and memorable experiences for your customers. Also, note you will receive franchise training and support from industry experts who are just as connected to iSMASH as you and your staff.
However, to help ensure that you get on the path to success, you’ll be expected to complete the company’s initial training program which includes attendance for two days at an existing iSmash training facility.
Nevertheless, when looking to buy an iSMASH franchise, you should endeavor to choose a space that is around 3,000 and 6,000 square feet and located in a high-traffic retail commercial location. The company also has partnerships with real estate brokers and architects to assist you during this process.
- Minimum requirements: $100,000
- Average total investment: $94,050 to $299,000
- Initial franchise fee: $24,950
- Royalty: 7.9%
This company is based in Los Angeles and is renowned in the rage room business. Note that they offer a safe, fun environment for those seeking to indulge their destructive desires, and those seeking new experiences. According to the company’s website, it is their utmost desire to provide many options to fit everyone’s needs and cravings through packages and customizable options.
In addition, Rage Ground also offers mobile units for interested investors. For customers, the price for mobile rage rooms in the LA area begins at $2,000 on the weekday and $3,000 on the weekend. Outside of the LA area begins at $4000, out of state pricing begins at $7,000 and internationally it starts at $10,000. However, these base prices include the whole setup and 300 plates (or other glass items of your choice of similar size).
Simply Smashing “Rage Release Room” is a well-known rage room franchise and a unique combination of amusement, stress reduction, and anger management for men and women. Owning a Simply Smashing–Rage Room franchise can be a lucrative business, however, it does have some initial financial requirements.
- Minimum Requirements: $40,000.
The popularity of rage rooms or anger rooms has grown massively in recent years. Considered an effective way to alleviate stress, the industry sees more and more shops spring up in the past few years. And as simple as the business might sound, there is more to starting and managing a rage room that meets the eye.
However, by acquiring a franchise, you won’t have to go it all alone. Note that the franchisor will provide you all the tools and resources needed for success. As soon as you sign a franchise agreement, the team springs into action to help you get on the road to success.
Steps to Open a Rage Room Franchise
With the growing popularity of rage rooms, now is a good time to consider investing in the industry. Owing to that, if you are looking to venture into this industry by purchasing a viable franchise, here are necessary steps to consider taking;
Perform your Due Diligence
Even if you like a specific franchise opportunity, it does not mean that you should pursue it. It is advised that you take your time researching and noting the top rage room franchise opportunities in your area.
After listing the companies, look for information on their sales, outlets, growth, and marketing plans. Consider speaking with existing franchisees and asking important business questions. Always remember that even if there is high demand now or in the past, this does not guarantee future success.
Pick a Suitable One and Apply
Once you’ve found the one that meets your personal, business, and financial needs, you must contact them to obtain their FDD. It is critical that you read and comprehend all documents provided to you, along with the franchise agreement.
Extensively assess the franchisor’s contractual rights, such as the right to determine supply sources and supply prices, control over marketing and advertising, and the ability to direct how services are rendered. Aside from that, you should be explicit about who has the authority to cancel the contract.
Keep in mind that once signed, the franchise agreement becomes a legally binding contract. Considering the amount you are looking to pay for the franchise, it makes perfect sense to pay for good professional advice on the contract terms. Professional advice can help you avoid making a costly business decision.
Understand your Obligations, Strengths, and Weaknesses
It is essential to remember that the franchise agreement will specify which aspects of the business are your responsibility and which are the responsibility of the parent company. Indeed, each franchise arrangement is unique and will differ from one rage room franchise to the next.
You must be clear about your responsibilities and whether you have the necessary skill set to carry them out. You might be experienced in customer service but have little or no knowledge of basic financial management or accounting.
You can work with the franchisor to handle all the financial and accounting requirements, as well as provide the system for you to use. Take into account whether you have the necessary skills to perform all of the tasks required of you in the franchise. If not, you must consider outsourcing those functions if you proceed with the purchase.
Understand the Numbers and Assess the Risks
When you buy a rage room franchise, keep in mind that you are not purchasing a job, but rather a business opportunity.
As a result, it is your duty to guarantee the franchise’s success within the parameters of the agreement. You will be expected to fully comprehend the commercial aspects of the franchise agreement, which will frequently determine how much you must pay the company once the franchise is operational.
If the business is not as fruitful as you hoped, keep in mind that the fee you pay to the company is unaffected. You may not have exclusivity in a location and may have to contend with nearby businesses, reducing your potential customer base significantly.
Overall, seek professional financial advice to assist you in understanding the commercial aspects of the franchise agreement and calculating the financial implications if key variables change.
Know your Exit Options
What are your medium and long-term goals? If you intend to sell the franchise after you’ve made it successful, then make sure you understand your contractual rights to do so, as well as any limitations or requirements imposed by the company.
It is worth noting that the longer the franchise term remains, the more valuable the business is likely to be. Because most rage room franchises operate from leased premises, note that an exit will necessitate a break from both the franchise agreement and the lease – two separate legally binding contracts with potentially opposing parties. Most franchisors will advise you to seek professional advice before you do this.