How much does it cost to open a AR Workshop franchise?

The total initial investment for a AR Workshop franchise ranges from varies (contact the franchisor for current FDD data). This includes the franchise fee of $35,000, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a AR Workshop franchise?

AR Workshop franchisees pay a 6.0% royalty fee and a 1.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a AR Workshop franchise?

Based on Item 19 financial performance data, the median AR Workshop franchise generates $141,296 in annual revenue. Estimated owner profit is approximately $25,433.

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Entertainment

AR Workshop Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

N/A

Franchise Fee

$35,000

Royalty Rate

6.0%

Initial Investment Range

Investment range data is not available for this franchise.

Franchise Fee

$35,000

One-time initial fee

The AR Workshop franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the AR Workshop brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

1.0%

of gross revenue

Total Ongoing Fee Burden: 7.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalty	6.0	PCT	Greater of 6% of Monthly Gross Sales or $500/month. The $500 minimum does not apply until the 6th month after signing. Due on the 7th of each month via electronic draft.
Brand Fund Fee	1.0	PCT	Currently the greater of 1% of monthly gross sales or $200/month. Subject to increase to the greater of 2% of monthly gross sales or $200/month by majority vote of franchisees. Due on the 7th of each month.
Technology Fee	135.0	FIXED	Supports storage, hosting, support and management of shared digital assets, website maintenance, IT training, and SEO. Due on the 7th of each month via electronic draft.
Minimum Local Advertising Spend	450.0	FIXED	Required minimum spend on local advertising. Franchisor may require spending in a specified manner with specified vendors. May require payment to franchisor or affiliates for local advertising services.
Marketing Software Fee	420.0	FIXED	$420 per calendar year. If signing after June 30, only $250 for remainder of year. Currently provides social media management tools. Due within 30 days after opening, then annually.
Renewal Fee	5000.0	FIXED	Due upon signing new franchise agreement at end of 10-year initial term. One renewal term of 5 years available.
Transfer Fee - New Owner	15000.0	VARIABLE	Greater of 50% of then-current initial franchise fee or $15,000 to transfer to a new AR WORKSHOP owner. Due as deposit upon notification of proposed transfer, non-refundable if approved.
Transfer Fee - Existing Owner	7500.0	VARIABLE	Greater of 25% of then-current initial franchise fee or $7,500 to transfer to existing owner in good standing.
Transfer Fee - Intercompany	2000.0	FIXED	$2,000 for intercompany transfers of ownership that result in no change of the controlling owner.
Finder's Fee	5000.0	FIXED	If franchisor introduces buyer and sale occurs, fee is due in addition to Transfer Fee. When franchisor approves franchise transfer.
Relocation Fee	2000.0	FIXED	Due when franchisor approves relocation. Franchisor not obligated to allow relocation.
Audit Fee	N/A	VARIABLE	Franchisee must reimburse audit costs if understatement is 2% or greater, plus pay any underpayment.
Late Fee	100.0	FIXED	Charged if gross sales report not submitted when due or if Royalty, Technology Fee, Brand Fund Fee, or any other required fee not timely paid.
Collection and Interest Charges	18.0	PCT	18% or highest lawful rate if lower. Applies to late payments. Due immediately if payments not made when due.
Retreat Fee	375.0	VARIABLE	Retreat typically held every 18-24 months. 2023 fee was $375 but will vary year to year. Charged whether franchisee attends or not. Franchisee pays own travel, lodging, food to extent not covered by fee.
Initial Training - Additional Attendees	250.0	FIXED	Initial franchise fee includes training for up to 2 people. Additional attendees pay $250 per person per day plus travel and lodging expenses. Due before training commences.
Optional Post-Opening Additional Training	N/A	VARIABLE	Rate set by franchisor in Brand Standards Manual. 30-day notice with payment due before training begins. Franchisee pays all lodging, transportation, and food expenses.
Unapproved Advertising Fines	250.0	VARIABLE	1st infraction: $250, 2nd infraction: $500, 3rd infraction: $1,000. For using advertising without following required procedures. In addition to other remedies.
New Supplier/Product Evaluation Fee	N/A	VARIABLE	May require franchisee to pay all fees and costs to evaluate unapproved product, service, or supplier. Currently not required for most retail items/supplies but may change. On demand.
Insufficient Funds Fee	50.0	FIXED	$50 plus any fee charged to franchisor for uncollected funds. Due upon notice.
Failure to Attend Required Training/Convention	1.0	PCT	Royalty can be increased by up to 1% for balance of calendar year if required training not attended (not required more than once a year). Retreat Fee still charged. Does not apply if prior written approval given.
Fines - General	1000.0	VARIABLE	Up to $1,000 per infraction for failure to operate in accordance with operating standards. Collected via EFT.
Local or Regional Cooperative Fees	N/A	VARIABLE	Currently not collected; no cooperative currently established. Franchisor has right to require participation in future. No maximum or minimum fee stated.
Giveaways and Promotions	N/A	VARIABLE	Required to participate in national, regional, and local giveaways and promotions. May require free or discounted classes/products. No reimbursement from franchisor.
Quality Control Review Services	N/A	VARIABLE	Must reimburse costs if secret shopper or customer satisfaction programs find non-compliance. As incurred.
Gift Card Liability	N/A	VARIABLE	If purchasing from existing owner, must assume prior owner's gift card liability and honor outstanding unredeemed gift cards. As incurred.
Goods and Services	N/A	VARIABLE	Franchisor and affiliates may be approved or exclusive supplier of required goods and services. Pay then-current rates. As incurred.
Continued Operation After Expiration	1000.0	VARIABLE	Greater of $1,000 per month or 150% of Royalties per month for every week of month-to-month operations after termination or expiration. Does not limit other damages.
Refurbishing Fee	N/A	VARIABLE	Depends on franchisor's expenses plus 15% administrative fee. Applicable if franchisee fails to refurbish and franchisor must complete. Upon notice.
Third Party Supplier Charges	N/A	VARIABLE	Your share of any charges billed to franchisor on behalf of your business. Franchisor divides invoice among franchisees. As incurred.
Early Termination Damages	N/A	VARIABLE	If Franchise Agreement terminated early, franchisor has right to seek damages. As incurred.
Data Inspections and Reimbursement	N/A	VARIABLE	If repeatedly violate data privacy/security obligations, must pay franchisor's inspection costs. Also responsible for costs from non-compliance or security breach. Upon demand.
Hold Harmless	N/A	VARIABLE	Must hold harmless, defend, and indemnify franchisor from claims arising from Workshop operation. Defense cost when suit occurs, indemnification when payment required.
Attorney's Fees and Costs, and Arbitration	N/A	VARIABLE	Non-prevailing party pays prevailing party's expenses including attorneys' fees. When court or arbitrator orders, if franchisor wins.
Insurance Premium Reimbursement	N/A	VARIABLE	If franchisee doesn't purchase required insurance, franchisor may purchase it and franchisee must reimburse. Due immediately on notice.
Enforcement Costs	N/A	VARIABLE	Must pay franchisor's enforcement costs (including attorneys' fees) if non-compliant with Franchise Agreement. Collected via EFT. As incurred.

What You Get

Financial Performance (Item 19)

Median Revenue

$141,296

per year, per location

Mean Revenue

$127,876

per year, per location

Profitability Estimate

Estimated Owner Profit

$25,433

per year

Profit Margin

18.0%

of revenue

Estimation method: benchmark

Unit Growth & Failure Rate

Avg. Annual Closure Rate

8.6%

Elevated risk — above industry average

Net Unit Growth

-24 units

From 2021 to 2023

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2021	138	—	—	—	144
2022	144	—	—	—	123
2023	123	—	—	—	114

Is a AR Workshop Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the AR Workshop franchise opportunity:

Overall Score

55/100

Moderate opportunity

Est. Payback Period

N/A

Insufficient data

Risk Level

High

8.6% annual closure rate

AR Workshop shows a moderate score across our evaluation criteria. Careful due diligence is recommended. With median unit revenue of $141,296 and a combined fee burden of 7.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.