Family Entertainment Center Due Diligence Checklist for Buyers
A family entertainment center can look full on a Saturday afternoon and still carry problems a buyer will not see from the floor: a booking calendar padded with unpaid holds, attractions overdue for inspection, games owned by an outside operator, or a lease that requires landlord consent the seller has not requested. Family entertainment center due diligence is the period in which a buyer tests the seller’s story against records, inspections and conversations before committing to close.
This checklist is general information for buyers of existing, operating family entertainment centers. It is not exhaustive, and every transaction is different. Inspection, permit, safety and employment rules vary by state and locality, and buyers should rely on qualified attorneys, accountants, inspectors and insurance professionals. Nothing here is legal, tax or regulatory advice.
Financial Records
- Several years of tax returns and financial statements that reconcile with each other
- Point-of-sale and booking system reports by revenue stream and month
- Bank statements that tie to reported sales
- Documentation for owner add-backs and one-time expenses
- A schedule of existing debt, leases and other obligations
Revenue Detail
Review admissions, parties and groups, food and beverage, arcade and redemption, and memberships separately, including prize costs, refunds and discounts. Our article on family entertainment revenue mix explains why each stream deserves its own review.
Parties, Groups and Deposits
- A schedule of future parties, school trips, camps and group events
- Deposits collected for each booking and how they are recorded
- Cancellation and refund terms and recent practice
- Any outstanding gift cards, passes or prepaid memberships
See our article on birthday parties and group bookings for how these are handled at closing.
Attractions, Rides and Games
- A list of attractions, rides and games with ownership status
- Maintenance logs, repair records and parts availability
- Any required state or local inspection reports and permits
- Agreements for games placed by outside operators on a revenue-share basis
Our article on attraction inspection records covers this review in more depth.
Safety, Waivers and Insurance
- Incident and injury logs and how they are maintained
- Waiver forms, how they are collected and how records are stored
- Current insurance policies and loss runs
- Any pending or threatened claims
These items should be reviewed with counsel and insurance professionals. See our article on safety, waivers and claims history.
Lease or Real Estate
Review the lease term, renewal options, rent, use clauses, maintenance obligations and assignment provisions, or, if the property is included, title, survey and environmental reports. See our article on the family entertainment center lease.
Permits, Licenses and Franchise Agreements
List every food service permit, alcohol license, amusement or ride permit, occupancy certificate and franchise or brand agreement. None should be assumed to transfer, and some may require approvals or new applications. Franchise agreements frequently require franchisor approval of a new owner.
Staff and Management
Review the organization chart, the roles of managers and party hosts, pay practices, scheduling and turnover. Employment and worker classification questions should go to qualified professionals. Our guide to family entertainment staff retention covers transition planning.
Building and Systems
Have qualified inspectors review the roof, heating and cooling, electrical systems, flooring, restrooms and parking, along with any accessibility concerns.
US Professional Funding helps buyers finance the acquisition of existing, operating family entertainment centers. Learn more about our family entertainment center acquisition financing.
