1. The Zero-Royalty Headline
Most VR franchises skim 7 % gross + 2 % marketing fund. Activate Games VR arena franchise 2026 charges $0 royalty—only a flat $299/month software license that includes 24/7 support, quarterly content, and white-label booking. The result: 46 % EBITDA vs 29 % for royalty brands, translating to $374 k extra cash over five years on a single 4-station site.
2. Investment Snapshot – What You Actually Pay
| Line Item | USD | Inclusions |
|---|---|---|
| 4-station VR arena turnkey | $58,700 | Headsets, PCs, haptic floor, tracking, install |
| Franchise fee | $0 | No royalty ever |
| Software license | $299/month | Cloud updates, POS, booking app, call center |
| Initial marketing | $3,000 | Grand-opening kit, geo-ads, influencer video |
| Total Day-1 cash | $61,700 | Finance 80 % at 7 % APR |
Monthly payment (60 mo): $1,230 vs projected $19,250 net = coverage 15.6 : 1.
3. 46 % EBITDA Math – Line-by-Line Proof
Year-1 4-station site (400 sq ft)
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Gross revenue: $504 k (55 % occupancy × 12 hr × $0.48/min)
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Rent (mall) 30 %: −$151 k
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Labor 2 FTE 18 %: −$91 k
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Software flat: −$3.6 k
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Electricity 3 %: −$15 k
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Insurance 1 %: −$5 k
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Net before dep.: $232 k → 46 % margin
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Depreciation (7 yr): −$8.4 k
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Net after dep.: $223 k
Excel model downloadable from Activate Games website – sensitivities included.
4. 2026 Activate Games Territory Policy – ZIP-Code Exclusivity, 15-Mile Radius
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Minimum territory: 1 ZIP or 15-mile radius, whichever larger
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Population minimum: 80,000 (ensures 1,200 birthday parties/year)
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No additional franchisee within territory without written consent
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Transfer/sale: $5,000 fee, new operator must meet KPI gate
Example: Dallas buyer locks ZIP 75201; second applicant blocked for 5 years.
5. Support Services – What “Zero Royalty” Actually Includes
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Site-selection AI – footfall, income, competitor GIS model
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White-label booking app – Apple/Google Play under your logo
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24/7 call center – English, Spanish, Arabic < 30 s pickup
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Quarterly content drops – new VR titles, zero download fee
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Dynamic pricing AI – auto surge +20 % weekends
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Group purchasing – hardware 8 % below open market
Independent operators pay 20 % content revenue share for similar titles.
6. Franchise vs Independent – 5-Year Cash Comparison
| Model | Yr-1 Net | 5-Yr Cumulative | NPV 10 % |
|---|---|---|---|
| Activate Franchise | $232 k | $1.21 M | $945 k |
| Independent | $186 k | $836 k | $571 k |
| Delta: +$374 k cash under franchise; IRR: 98 % vs 67 %. |
Excel side-by-side model downloadable from Activate Games website.
7. Activate Games Success Stories – Scanned P&L Summaries
Site A – Ohio Mall (400 sq ft)
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Opening: Mar 2023
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Gross 2024: $620 k
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EBITDA: 46 %
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Payback: 9.8 months
Site B – Riyadh KSA (800 sq ft)
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Investment: $118 k (duo arena)
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Gross 2024: $1.14 M
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Payback: 7.1 months
Scanned P&L available under NDA via Activate Games investor portal.
8. Legal Skeleton – FDD, Renewal, Transfer
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FDD Item 7: exact cost table, no hidden fees
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Initial term: 10 years, $0 renewal if uptime > 90 %
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Transfer fee: $5,000 (vs $25 k royalty brands)
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Exit valuation: 3.2× SDE industry multiple, no transfer restriction
Franchise attorney average review cost: $2,200 vs $5 k+ for royalty brands.
9. Technology Moat – Why Margins Stick
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0.3 mm tracking accuracy → higher repeat → lower marketing cost
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OTA content → fresh titles quarterly → no 20 % revenue leak
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Bulk hardware buy → 8 % lower cap-ex → faster payback
All embedded in Activate Games ecosystem.
10. Call to Action – Lock 2026 ZIP Before Competitor Files
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Download the 2026 FDD summary + 5-year cash-flow Excel
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Book 30-min Zoom with franchise director (English/Spanish)
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Secure exclusive ZIP code; only one per 15-mile radius
