AR WorkshopFranchise Cost, Revenue & Review 2026
Formerly known as Workshop (Fitness)
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A AR Workshop franchise requires a total initial investment of $134K – $230K, including a $35K franchise fee. Per the 2024 FDD, average unit revenue was $128K[2]. SBA 7(a) loans show a 9.1% charge-off rate across 19 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $134K – $230K
- 11th pct Recreation & …
- Avg gross sales
- $128K
- 3rd pct Recreation & …
- Royalty
- N/A
- Units
- 115
- 37th pct Recreation & …
- SBA default
- 9.1%
- system-wide median varies by category
Quick verdict · Recreation & Entertainment · color = vs category peers
Green = >15% above Recreation & Entertainment avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
At 0.7x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
The system contracted 7% year-over-year. Investigate why units are closing.
Bottom line
- Total investment $134K – $230K including a $35K franchise fee.
- Average unit revenue of $128K/year (median $120K).
- Verdict B (Above Average) with a risk score of 62/100. SBA loan charge-off rate of 9.1% across 19 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -20.8% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- AR WORKSHOP FRANCHISING, LLC
- Incorporated in
- SC
- HQ
- 315 Main Street, Suite AA, Pineville, NC 28134
- Auditor
- Farris, Cooke & Associates, P.A.
- Audited financials
- Franchisor revenue
- $1.9M
- vs $2.1M prior year
Overview
About
AR Workshop franchisees operate DIY craft studios where customers create and customize personalized wood and home décor items using on-site tools, equipment, and design technology. Day-to-day operations involve managing class scheduling, equipment maintenance, material inventory, customer service, and driving walk-in/event-based traffic through retail-style retail locations.
- CEO
- Maureen Anders
- Headquarters
- NC
- Founded
- 2017
- FDD year
- 2024
- States available
- 34
FDD Item 7 · 2024 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $35K | $35K |
| Working capital (3–6 mo) | $50K | $80K |
| Equipment, build-out, other | $49K | $115K |
| Total initial investment | $134K | $230K |
Source: AR Workshop 2024 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$20K
16.0% margin
Unlevered ROIC
8%
EBITDA / total invested capital
Payback
12.1 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $134K – $230K
- Better than avg vs category
- Liquid capital req'd
- $50K – $80K
- Better than avg vs category
- Franchise fee
- $28K – $35K
- Better than avg vs category
- Royalty
- the greater of 6% of Monthly Gross Sales or $500/month
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $135 |
| Transfer fee | $15K |
| Renewal fee | $5K |
| Total fee load | 7.0% of rev |
Financial Performance
- Avg gross sales
- $128K
- Per unit, per year
- Median gross sales
- $120K
- Item 19 type
- gross_sales
- Sample size
- 99 units
- vs category median 5 · large
- Range (low → high)
- $32K→$400K
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 176 Recreation & Entertainment brands
Revenue is only 0.7x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Recreation & Entertainment averages
How AR Workshop Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 115
- Opened
- 4
- Last reporting year
- Closed
- 13
- Turnover rate
- 11.3%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- -7.3%
- Net unit change last year
- 3-yr CAGR
- -20.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 17
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 30 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 19
- Loan volume
- $2.1M
- Median loan
- $100K
- 50th percentile
- Charge-off rate
- 9.1%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 90.9%
- 5-yr charge-off
- 10.0%
- Loans approved 2021+
- Active lenders
- 16
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into AR Workshop's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 12 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
AR Workshop presents meaningful risk due to declining unit count, undisclosed profitability metrics, prior regulatory action for non-compete violations, and unclear unit economics relative to investment requirements.
Audited financials (Item 21)
Yes · Farris, Cooke & Associates, P.A.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 62 / 100 rating
- 01MEDUnit count declined 7.3% YoY (115 units), indicating system contraction and potential market saturation or franchisee dissatisfaction
- 02MEDNo Item 19 (Average Net Income) disclosed — inability to verify profitability claims; average revenue of $127,875 may not support stated investment range of $134,312-$229,708
- 03HIGHLitigation history: Assurance of Discontinuance with Washington AG regarding illegal non-compete provisions suggests franchisor compliance issues and potential governance concerns
- 04MEDRoyalty structure floor of $500/month ($6,000 annually) is aggressive given average revenue; at lower end, this represents 4.7% effective royalty on disclosed average
- 05MINORHigh franchise fee ($35,000) relative to initial unit economics — fee represents 26-38% of total investment but profitability unclear
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius / Population |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 15 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | North Carolina |
| Litigation count | 1 |
Items 10, 11
Training & Operations
- Classroom training
- 28 hrs
- On-the-job training
- 12 hrs
- POS system
- Clover
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Clover
Item 20 · call current owners
Franchisee Contacts
99 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
AR Workshop · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a AR Workshop franchise?
The total investment to open a AR Workshop franchise ranges from $134K – $230K, with an initial franchise fee of $35K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do AR Workshop franchise owners earn?
According to Item 19 of the AR Workshop FDD, the average gross sales per unit is $128K. The median is $120K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is AR Workshop's franchise failure rate?
Based on SBA 7(a) loan data, AR Workshop has a charge-off rate of 9.1% across 19 loans, meaning 9.1% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many AR Workshop franchise locations are there?
As of their most recent FDD filing, AR Workshop has 115 total units in the United States, including 0 franchised units and 1 company-owned units. 4 new units were opened in the latest reporting year.
Is AR Workshop a good franchise to buy?
FranchiseVerdict rates AR Workshop as a B-grade franchise with a risk score of 62 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.