Do The Beach

Do The Beach's track record is as fresh as its concept, with franchising launching in 2023 under LS11 Holdings LLC. Item 20 of the 2025 FDD details a tiny footprint: zero franchised units at start of 2024, two at year-end after openings, and 10 projected for 2025—a tentative trajectory signaling pioneer risk over proven scalability. Zero terminations, renewals pending due to newness, or transfers reflect stability in a sample of one, but this micro-scale pales against competitors boasting hundreds of locations, flagging untested resilience in a sector prone to high overheads and location sensitivity.

Financials hit hard for this capital-heavy play: Item 7 pegs total investment at $892,500-$1,865,000, including $50,000 franchise fee, $200K+ real estate leasehold, $600K+ for inflatables/obstacles, and inventory. Ongoing: 7% gross sales royalty, 1% marketing fund. No Item 19 means no average unit volumes or profits—a critical red flag, as peers average $1M-$2M AUV but with 20-30% margins post-expenses; here, franchisees fly blind without validated comps. For investors, the combo of steep entry, unproven earnings, and embryonic growth screams caution unless you're betting on first-mover beach buzz.