From the filings
Software purchasing at Funcation Station Franchising is controlled at the headquarters level in New York, where CEO Joshua Montalban, COO Samantha Montalban, and CFO Carlos Soto lead a small, three-unit system. The most recent 2025 Franchise Disclosure Document does not list any mandated or recommended technology vendors, indicating a potentially open procurement environment. With only 2 franchised and 1 company-owned location, the immediate addressable market is limited, but the executive team's direct involvement makes for a streamlined sales process.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
10%of gross sales (FY2025)
15% reference
Franchisor behaviours
28 requirements the franchisor states in this filing, each in its own words; 1 explicit no; 5 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
At all times, Franchisee shall provide and permit Franchisor to maintain direct and independent access to the Business Management System and the Business Management System Data and to duplicate and evaluate the data;
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
within 60 days of the end of each calendar year, Franchisee shall submit to Franchisor Franchisee’s annual financial statements and other reports related to the operations of the Franchised business including, but not limited to, income statement, statement of cash flows, balance sheet, and other operational reports…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We are currently designated as an approved supplier of mats, gates and other soft play equipment, ball pits and inflatables.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisor, in Franchisor’s Reasonable Business Judgment, may, from time to time, modify the list of approved brands, suppliers and distributors of System Supplies, Vans, and approved equipment, supplies and services to be used by the Franchised Business
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
During our fiscal year ending December 31, 2024, we did not receive revenue from suppliers from franchisee purchases of source restricted products or services.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We and/or our affiliates may receive rebates, payments and other material benefits from suppliers based on your purchases and we reserve the right to institute and expand rebate programs in the future.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
20Item 8
We estimate that your purchase of goods and services from suppliers according to our specifications, including your purchase of goods or services from our designated exclusive suppliers, to represent approximately 75% of your total purchases and leases in establishing the Franchised Business and approximately 20% of…
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We may charge you a fee equal to the costs and expenses that we incur in reviewing and evaluating an alternate supplier, product, and/or service requested by you.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information, samples, and testing data that we may request.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
All rights in and to telephone numbers associated with the Franchised Business, shall, at Franchisor’s election, be transferred to Franchisor.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor has the right at any time during business hours, and without prior notice to Franchisee, to inspect Franchisee’s non-residential Administrative Office, Vans, and System Supplies.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
At all times, we reserve the right to supplement, modify and update the Manuals.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
Franchisee must obtain Franchisor’s written approval of the location of Franchisee’s Administrative Office.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
You may not use any websites, web-based media or digital media unless expressly approved by us in writing.
Is a minimum grand opening advertising spend required?
YesFranchise agreement
Not less than 30 days prior to the opening of the Franchised Business, Franchisee shall spend not less than $3,500 to market and promote the grand opening of the Franchised Business in accordance with Franchisor’s standards and specifications;
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesFranchise agreement
On an on-going monthly basis, Franchisee must spend not less than 1% of Franchisee’s monthly Gross Sales or a $150 a month minimum, whichever is greater, on the local marketing of the Franchised Business within and/or targeted to Franchisee’s Operating Territory.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If we elect to form a local or regional cooperative or if a cooperative already exists as to the area of your Funcation Station Business, you will be required to participate in the cooperative in accordance with the provisions of our operations manual which we may supplement and modify from time to time.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase the System Supplies, and, to the extent additional inventory of materials is needed, you must obtain System Supplies and System Equipment and Materials from us, our affiliates, and/or our designated suppliers.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase the System Supplies, and, to the extent additional inventory of materials is needed, you must obtain System Supplies and System Equipment and Materials from us, our affiliates, and/or our designated suppliers.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 8
Credit Card Processing – You must use our designated supplier and vendor for credit card processing which may be integrated with the business management system that we designate.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
Payment is subject to our specification and instruction, including, our election to have all fees automatically drafted from your business bank account or automatically debited or charged to your business bank account.
Must the franchisee participate in a gift card program?
YesItem 8
You must use our designated supplier and vendor for the ability to access and use online, business management integrated, web based, and/or app based, ordering, customer rewards, and/or gift card systems.
People
Must employees wear uniforms specified by the franchisor?
YesItem 11
you must ensure that all employees wear and maintain the proper uniforms with our approved System branded apparel and uniforms including, but not limited to, the apparel and uniforms comprising System Supplies.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesFranchise agreement
exclusively purchase and use equipment, supplies, promotional materials, point of sale systems and Business Management Systems designated by Franchisor
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesFranchise agreement
At all times, Franchisee shall provide and permit Franchisor to maintain direct and independent access to the Business Management System and the Business Management System Data and to duplicate and evaluate the data;
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesFranchise agreement
“Business Management System” refers to and means the software, internet, web based and/or cloud based system or systems, point of sale system or systems and customer relationship management system or systems as same may be individually, or collectively, designated by Franchisor, in Franchisor’s Reasonable Business…
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
Franchisee or, if Franchisee is a Corporate Entity, Franchisee’s Managing Owner and Manager, at Franchisee’s sole cost and expense, must attend and successfully complete all refresher training courses or system-wide training courses, additional training programs and seminars as Franchisor periodically may designate…
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 6
If we offer a franchisee annual conference in a given year you will be required to attend the conference on the dates and at the location that we designate.
Funcation Station Franchising presents a compact but direct sales opportunity for software vendors. The system consists of just 3 total units—2 franchised and 1 company-owned—according to its 2025 FDD. While the addressable market is small, the concentration of decision-making at the New York headquarters means a vendor can reach the entire system through a single conversation. The brand operates in the youth-services segment, and its 8.0% royalty rate on a 10-year initial term suggests a franchisor focused on long-term, stable relationships. For a software vendor, this structure means any deal won will likely have a long lifecycle, but the initial sale must be won at the very top.
The 2025 FDD lists three executives in Item 1, and for a system of this size, they are the buying center. Joshua Montalban serves as Chief Executive Officer, Samantha Montalban is the Chief Operating Officer, and Carlos Soto holds the Chief Financial Officer title. There is no separate CIO or VP of Technology on file, so a vendor's pitch will need to resonate with a CEO and COO focused on operations and a CFO watching the budget. The absence of a dedicated technology buyer means your value proposition must be framed in terms of operational efficiency, cost control, and support for the franchisor-franchisee relationship, rather than deep technical integration.
A key finding for any vendor is what the FDD does not say. The 2025 disclosure captures no mandated or recommended technology systems. This is a critical signal. It means Funcation Station has not standardized a point-of-sale, scheduling, CRM, or any other operational software across its network. For a sales pitch, this is both an opportunity and a challenge. You are not displacing an incumbent, but you must build the business case from scratch. The 2 franchised locations may be using ad-hoc solutions, and the company-owned unit is a direct testing ground for any software you propose. Approach the HQ team with a pilot proposal for the single corporate location as a proof of concept for the broader system.
The FDD does not include an Item 8 procurement extract, which typically lists designated or approved suppliers. This absence reinforces the open procurement environment. Without a formal supplier program, a vendor's path to a deal is a direct enterprise sale to the C-suite. Timing your outreach is tied to the franchise agreement lifecycle. The initial term is 10 years, and Item 17 outlines a renewal process that requires the franchisee to provide 180 days' prior written notice, sign the then-current agreement, and pay a renewal fee. These renewal windows are the most logical trigger for a technology review. By monitoring when the 2 franchised units signed their agreements, you can back-calculate the 180-day notice period and engage the franchisor well in advance to position your software as part of the updated agreement terms.
The 2025 Franchise Disclosure Document is the definitive source for vetting this brand as a sales target. Start with Item 1 to confirm the executives and their roles, then move to Item 8 to check for any newly added supplier requirements that may have been missed in earlier extracts. Item 11 is where you will find any future technology mandates, and Item 17 details the renewal conditions that create your sales trigger events. The full document is embedded below for your review. For a ranked target list that benchmarks Funcation Station against thousands of other franchise systems, FranCloud can help you prioritize your outbound efforts.
Questions vendors ask
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FDD alert
We’ll email you the moment Funcation Station Franchising files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
3 operators run 3 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| NJ | 2 |
|---|---|
| WI | 1 |
Related Youth services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.