Game Kastle Franchise Cost, Revenue & Review 2026
- Investment
- $195K – $419K
- Disclosed sales
- $786K
- gross sales, not profit
- SBA charge-off
- Under 10 loans (1)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Game Kastle is a hobby retail franchise selling board games, trading cards, and miniatures while hosting in-store gaming events. Franchisees run the stores, managing inventory, events, and community.
FranchiseVerdict summary · 2026
A Game Kastle franchise requires a total initial investment of $195K – $419K, including a $48K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $786K[2]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $195K – $419K
- 22nd pct Retail
- Avg gross sales
- $786K
- 9th pct Retail
- Royalty
- 5.0%
- 6th pct Retail
- Units
- 9
- 9th pct Retail
- SBA charge-off
- N/A
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $195K – $419K including a $48K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $786K/year (median $751K).
- RISKVerdict C (Average), verdict score 40/100 (higher is better).
- GROWTHNegative: net -1 franchised outlets in the latest year (0 opened, 1 closed) (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Game Kastle Universe, LLC
- Predecessor
- None
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Shaw J. Mead
- Incorporated in
- CA
- HQ
- 2310 Homestead Rd., #C1216, Los Altos, CA 94024
- Auditor
- KMS Financial Consulting
- Audited financials
- Franchisor revenue
- $345K
- vs $326K prior year
Overview
About
- CEO
- Shaw J. Mead
- Headquarters
- CA
- Founded
- 2017
- FDD year
- 2026
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 9% below the typical retail franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $48K | $48K |
| Working capital (3–6 mo) | $18K | $87K |
| Equipment, build-out, other | $130K | $284K |
| Total initial investment | $195K | $419K |
Source: Game Kastle 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $195K – $419K
- Top 40% of category vs category
- Liquid capital req'd
- $18K – $87K
- Top 40% of category vs category
- Franchise fee
- $48K – $48K
- Top 40% of category vs category
- Royalty
- 5.0%
- typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $200 |
| Training fee | $600 |
| Transfer fee | $13K |
| Renewal fee | $20K |
| Inventory (initial) | $85K – $168K |
| Total fee load | 6.0% of rev |
A 6.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales land near the retail norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Game Kastle until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$359K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Game Kastle unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $786K
- Per unit, per year
- Median gross sales
- $751K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 6 outlets
- vs category median 46 · small
- Range (low → high)
- $214K→$1.7MCited, not corroborated — printed on page 42 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 278 Retail brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $786K/year in gross sales. Revenue-to-investment ratio: 2.6x.
Fee burden
Total ongoing fee load of 6.0% — below the Retail median of 8.0%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System shrank 14.3% over 3 years — 1 closures. Ask existing franchisees about local market conditions.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail medians
How Game Kastle Compares
Category median of published Retail brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 9
- Opened
- 0
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 11.1%
- Company-owned
- 3
- Corporate units in the system
- % franchised
- 67%
- vs corporate-owned
- Net growth (3-yr)
- -14.3%
- Net unit change over 3 years
- 3-yr CAGR
- +20.0%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 6 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
6
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $150K
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Contracting franchise system with regulatory compliance issues, zero profitability transparency, and high investment relative to disclosed financials presents elevated risk despite protected territory.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
One Washington Department of Financial Institutions Securities Division Consent Order (No. S-22-3386-22-CO01, September 13, 2022) for selling an unregistered franchise; franchisor agreed to cease and desist and pay $2,000 in investigator costs.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · KMS Financial Consulting
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
No audited financial statements present in the provided page images. Pages p143-p151 are Exhibit F (Franchise Operations Manual Table of Contents) and Exhibit G (State Addenda and Agreement Riders) for Game Kastle Universe, LLC. No Item 21 financial statements, balance sheet, income statement, or Independent Auditor's Report appear in this image set, so all figures are null.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 40 / 100 verdict
- 01MEDUnit count declined 14.3% YoY (9 units) indicating system contraction and franchisee attrition
- 02MEDNet income not disclosed in FDD Item 19 despite $786k average revenue, preventing profitability analysis and ROI calculation
- 03MINOR2022 regulatory violation in Washington for selling unregistered franchise signals compliance gaps and potential exposure in other states
- 04MEDHigh initial investment ($194.9k-$418.8k) combined with undisclosed profitability creates misaligned risk-reward
- 05MINOR5% royalty on gross sales (not net) means franchisees pay regardless of profitability, exacerbating margin pressure
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 6.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 10 mi |
| Territory population | 350,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 7 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | Santa Clara, California (principal city closest to franchisor's principal place of business) |
| Jury trial waiver | Yes |
| Governing law | Franchisee's home state (state where Game Kastle Business is located) |
| Litigation count | 1 |
View Item 3 litigation summary
One Washington Department of Financial Institutions Securities Division Consent Order (No. S-22-3386-22-CO01, September 13, 2022) for selling an unregistered franchise; franchisor agreed to cease and desist and pay $2,000 in investigator costs.
Items 10, 11
Training & Operations
- Classroom training
- 36 hrs
- On-the-job training
- 4 hrs
- Training location
- Santa Clara, California and online or another designated location
- Ongoing training
- Required
- Time to open
- 18 mo
- From signing to launch
- POS system
- GKStore POS / Clover Flex
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: GKStore POS / Clover Flex
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Game Kastle franchise?
The total investment to open a Game Kastle franchise ranges from $195K – $419K, with an initial franchise fee of $48K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Game Kastle franchise owners earn?
According to Item 19 of the Game Kastle FDD, the average gross sales per unit is $786K. The median is $751K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Game Kastle?
Game Kastle is franchised by Game Kastle Universe, LLC. The FDD names no parent company. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Game Kastle FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Game Kastle FDD and qualifies whose outlets they describe.
What is Game Kastle's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Game Kastle (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Game Kastle franchise locations are there?
As of their most recent FDD filing, Game Kastle has 9 total units in the United States, including 6 franchised units and 3 company-owned units.
Is Game Kastle a good franchise to buy?
FranchiseVerdict rates Game Kastle as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.