Bottom line
- Total investment $283K – $507K including a $40K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $666K/year. Estimated payback in 2.7 years.
- Rated MODERATE with a risk score of 63/100.
- No protected territory and the franchisor reserves the right to compete in your area. Clarify territorial boundaries before signing.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Fantasy Claw Arcade unit return on the cash you put in?
Unlevered ROIC · per unit
22%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Fantasy Claw Arcade units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$933K
on $4.7M purchase
Total debt
$3.7M
SBA $2.3M + senior + seller note
Overview
About
Fantasy Claw Arcade franchisees operate entertainment venues featuring claw/crane machines and arcade games. Day-to-day operations include machine stocking and maintenance, prize inventory management, customer service, facility cleaning, and cash collection/reconciliation. Revenue derives from coin/card-operated game play and prize redemption mechanics.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
No multi-year history disclosed and no opening/closing activity in the last reporting year.
Item 20 · 16 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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Single-unit franchise with unproven system, franchisor going concern risk, unprotected territory, and royalty burden consuming nearly one-third of net profit creates substantial execution and scalability risk.
Score breakdown · what drove the 63 / 100 rating
- 01MINOROnly 1 unit in system with unknown growth trajectory indicates minimal track record and unproven scalability
- 02HIGHGoing Concern status is FALSE — suggests the franchisor itself may face viability questions
- 03MINORNo protected territory creates direct cannibalization risk if franchisor opens competing units nearby
- 04MINORWide investment range ($283K–$507K, 79% spread) signals unclear cost structure or inconsistent buildout standards
- 05MINORItem 19 financial claims ($146.8K net income) are based on single unit — statistically insignificant sample size
- 06HIGHNo disclosed litigation is positive but suspicious given single-unit history provides limited lawsuit exposure opportunity
- 07MINOR7% royalty on $666K average revenue = $46.6K annual royalty burden (31.7% of reported net income) — very high
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
16 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Fantasy Claw Arcade · FDD (2025) PDF