IMS puts tag on kart centers

The Indianapolis Motor Speedway has entered into a partnership that could put its name on more than 100 indoor go-karting centers nationwide.

But officials of Seattle-based Traxx Racing Inc. said the agreement between IMS and their company means much more.

IMS and Traxx Racing announced Aug. 23 a multi-year agreement allowing Traxx to use trademarks and other properties owned by IMS in connection with the rollout of indoor karting centers.

But IMS officials are doing more than lending brand identity. They're getting involved in Traxx's business development - including a seat on the company's board of directors - and are promising to bring resources and business partners to the table as the start-up company attempts to open at least 10 indoor karting centers in each of 10 regions across the country.

Rourke O'Brien, Traxx chairman and CEO, hopes to move as fast with his business plan as the karts in his center will move around the track.

Traxx will borrow the business model used by public companies such as Outback Steakhouse and Blockbuster Video. O'Brien projects selling up to 50 franchises nationwide within four years, then buying those back and rolling them up into an initial public offering. Each center will take about 80,000 square feet and require a $1.5 million buildout investment.