Messy Business: Entrepreneurs Create Funtastik Labs, a Fun Science Environment Using Tech, Slime and Entertainment to Break into the $11B Children’s Enrichment Segment

Born out of a desire to offer an exciting, welcoming space for kids to create and explore STEAM learning, Funtastik Labs combines art, science and engineering in a single, family-friendly domain. Now, the Houston-based business is ready to grow through franchising, eyeing 10 new locations in 2024.

“When our kids were young, they loved doing messy science experiments and art projects. We didn’t want to stop them from doing that exploration, but we wanted a place for them to do this without making a mess in our home,” said Roli Sangal, co-founder and CEO. “There were very few platforms that we saw that offered these kinds of activities for kids. We focus on letting the kids have fun and explore. We encourage them to figure out what they like to do best and follow their dreams with an experimental model rather than an academic one.”

Holding a unique space in the $11-plus billion U.S. children’s entertainment market, Funtastik Labs provides entertainment options that are catered to children's interests but branch beyond the standard kid-focused offerings, refusing to stray away from even the messiest science experiments or art projects and encouraging each child to engage how and where they prefer. Created by parents working to address a need for their own family, the Funtastik Labs model addresses major pain points of both children and parents, and the firsthand perspective worked into the business model has driven the brand to quick success in its home market.

After the opening of the first Funtastik Labs location in late 2019, the concept quickly took off in Katy, Texas, offering birthday parties, everyday attractions, field trips and summer camps. The concept has grown to be so popular that the first location is consistently full, and a second location is in the works in Sugar Land in 2024. 

“The fact that we’re opening the second location is a big milestone,” said Raj Gupta co-founder and managing director. “Our camps or birthday parties are priced higher than our competitors, so the model is lucrative, but we’re also busy and getting glowing feedback from our customers which means we’re delivering great value.”

The franchise is prepared to award a few franchises before the end of 2023 as it ramps up to sign on 10 new franchisees next year.

“Texas and Florida are the two states that we’ve heard the most buzz in about a concept like ours,” said Gupta. “However, we aren’t opposed to other states. There aren’t many, if any, other concepts like us, so the demand is there. Funtastik Labs can really be brought anywhere; we’re even seeing franchise requests come in internationally.”

How the Brand Stands Out: At Funtastik Labs, There Isn’t a Single “Right Answer”

Sangal noticed two major gaps in the market as she was developing Funtastik Labs. First, many entertainment-focused concepts are geared towards adults, and either are not kid-friendly or do not address the full range of interests a child may have. On the flip side, child-focused franchises tend to offer STEAM exploration in a more academic environment or shy away from it entirely to focus on physical engagement through sports and play.

In a world of academics-first franchises, Funtastik Labs breaks out of the tutoring and homework-help molds to allow children to explore in a lower-pressure environment. By placing exploration first, Funtastik Labs embraces the fact that children will naturally progress in their areas of interest with continued play and practice. Rather than pushing children toward a specific subject that they are perceived to be good at, the franchisor provides the environment and supplies necessary for each child to choose their own path.

This allows local owners to become a fast favorite with parents and children alike, offering a wider range of attractions than many children’s entertainment concepts while creating an environment that fosters learning without making it the central focus of the experience.

“When it comes to science and arts, some kids are exposed to the activities at home, but a lot of the exposure comes in schools and daycares that have a different structure than us. They have tests, homework, grades and exams,” said Sangal. “We do away with all of that and just create an environment where the children come in and experience the activities for the sake of the experience. They can discover for themselves whether they find art, science or engineering tedious or if they find that sense of joy and flow.”

This serves as a huge differentiator for the children who visit Funtastik Labs, but it also draws parents and families to the brand. Sangal saw firsthand what children are interested in and how they like to play — with freedom, flexibility and the knowledge that support is available if they want it — and built the concept to address these needs specifically. Parents feel confident bringing their children to Funtastik Labs for exploration, and this demand, as well as the strength of the business, is demonstrated by the incredible growth of the first location.

How the Business Scales: Funtastik Labs Saw Incredible Growth from Day One

The versatility of the model positions it well to leverage a positive experience at first contact, whether that be first time walk-in customer, a birthday party guest or a field trip, and turn that into a long-lasting relationship and repeat revenue through additional event bookings and daily visits.

While families love engaging Funtastik Labs for scheduled events, the franchise presents a major differentiator compared to other daycare and after-school programs in its walk-in and ticketing offerings. A child does not have to be signed up for an entire semester with Funtastik Labs to enjoy the attractions, making it even easier for families to get involved and allowing franchisees to diversify their consumer base.

With continued expansion, Funtastik Labs is now looking to partner with franchisees who want to bring the concept to their own communities.

How Funtastik Labs Supports Its Franchisees

Both Sangal and Gupta are truly dedicated to building a franchise that delivers on its promises and embodies the vision the pair had at the time of its foundation.

“At the end of the day, whether it be Funtastik Labs itself or Funtastik Franchising, we really believe in delivering an experience — that’s what we’re about,” explained Gupta. “We want to provide a franchisee a great experience, and we’re very focused on them and their experience of going through the franchising process. We want to make that as great as possible, and that’s part of why we’ve taken the time we have to hone the business model and develop resources for new owners.”

This commitment to taking the necessary time will continue through its growth with new franchisees, playing a key role in the health of the system. Rather than simply signing franchise agreements to mark off development goals, the team will continue to grow in an intentional way to maintain the health and integrity of the entire system.

In addition to their personal passion for the brand’s purpose and its long-term success, the founders bring practical expertise that further informs strategy and support. Leveraging their professional backgrounds in marketing and technology and experience with Funtastik Labs, Sangal and Gupta ensure franchisees are trained and supported throughout their onboarding process and even after launching.

One of the most important support aspects offered by Funtastik Labs is help with real estate selection. Real estate selection is notoriously tricky for franchisees, and while the franchisor cannot directly negotiate leases on behalf of the franchisee, for example, it can provide additional support and input to ensure a strong site selection.

The franchisee is responsible for selecting their own site with the help of Funtastik Labs’ site selection guidelines. However, once the franchisee has chosen their ideal site, they are required to present it to the Funtastik Labs team for final approval. This serves as an additional collaborative checkpoint to ensure the franchisee is building a strong foundation for the future by choosing a location that aligns with the demands of the business.

Prior to opening, the corporate team also hosts extensive training, passing along experience, strategy and best practices built through years of firsthand experience with Funtastik Labs.

The training takes a total of two weeks and is spread out over multiple sessions based on milestones. Some sessions are hosted at Funtastik Labs’ flagship Katy, Texas location and others take place remotely. Both the franchisee and a management-level employee are required to attend to ensure they feel fully equipped to handle both operations and management aspects of the center. The training includes handouts, manuals, classroom instruction and on-the-job training to provide the most robust learning experience. Once this is complete, franchisees have access to other resources like marketing guidelines and additional manuals to support ongoing development and learning efforts.

Who Is a Great Fit for Funtastik Labs Franchising?

To expand, Funtastik Labs is looking to work with passionate franchisees who are truly interested in providing a fun, engaging environment for children to explore science, art and engineering concepts.

“We looked at what Funtastik Labs did for us and what it offered us as a family in terms of being able to stay true to our values,” said Gupta. “Funtastik Labs is great for the kids and parents that are coming to it, but we also think that running and operating a Funtastik Labs provides a lifestyle that you can really enjoy if you like working with kids and running a business.”

While it is not crucial that a prospective franchisee have experience in the children’s entertainment or childcare industries, they must be excited about the idea of supporting children in discovering their own passions and strengths, happy to lean into playful and nostalgic activities and willing to truly integrate themselves into the model during the first year of growth.

“We want this opportunity to be as meaningful for the franchise families as it is for our guest families,” added Gupta. “As your center establishes itself, Funtastik Labs should integrate smoothly into your life. This way, you can savor the daily joy of offering a space where kids have fun and explore, without it overshadowing your precious moments with your own family.

To find out more information on costs to buy this franchise, please visit 1851franchise.com/funtastik-labs/info