Sandbox VRFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Sandbox VR franchise requires a total initial investment of $251K – $1.9M, including a $50K franchise fee. Per the 2025 FDD, average unit revenue was $1.7M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $251K – $1.9M
- 19th pct Recreation & …
- Avg gross sales
- $1.7M
- 18th pct Recreation & …
- Royalty
- N/A
- Units
- 36
- 31st pct Recreation & …
- SBA default
- 0.0%
- 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
The system grew 50% year-over-year. Fast growth means demand, but can strain support.
65% cash-on-cash return (based on EBITDA). Above the 20% threshold most investors target.
Bottom line
- Total investment $251K – $1.9M including a $50K franchise fee.
- Average unit revenue of $1.7M/year, with an estimated 65% cash-on-cash return (based on EBITDA).
- Verdict A (Top Quintile) with a risk score of 41/100.
- System growing at 200.0% CAGR over 3 years with 36 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- GloStation Franchising USA, Inc.
- Parent company
- GloStation USA, Inc.
- Ultimate parent
- Sandbox VR Inc.
- Incorporated in
- DE
- HQ
- 4695 Chabot Drive, Suite 200, Pleasanton, California 94588
- Auditor
- Galleros Robinson
- Audited financials
- Franchisor revenue
- $4.9M
- vs $5.2M prior year
Affiliated brands
- Glo Big Boss Limited
- Glo Franchising LTD
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate location-based entertainment venues featuring premium virtual reality experiences (Holodecks). Day-to-day operations include customer booking management, VR equipment operation and maintenance, staff training and supervision, facility cleaning/sanitization, and marketing to drive foot traffic. Revenue is generated through pay-per-experience bookings, often positioned as premium entertainment for corporate events, birthday parties, and casual consumers.
- CEO
- Steven Zhao
- Headquarters
- CA
- Founded
- 2017
- FDD year
- 2025
- States available
- 2
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $75K | $100K |
| Equipment, build-out, other | $126K | $1.7M |
| Total initial investment | $251K | $1.9M |
Source: Sandbox VR 2025 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
$273K
16.0% margin
Unlevered ROIC
24%
EBITDA / total invested capital
Payback
4.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $251K – $1.9M
- Better than avg vs category
- Liquid capital req'd
- $75K – $100K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Better than avg vs category
- Royalty
- The greater of: (a) 5% of Gross Sales; or (b) the Minimum…
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
- Payback period
- 1.5 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $25K |
| Renewal fee | $13K |
| 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.
Financial Performance
- Avg gross sales
- $1.7M
- Per unit, per year
- Median gross sales
- N/A
- Avg ebitda
- $689K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 64.8%
- Based on EBITDA / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 36 units
- vs category median 5 · large
- Range (low → high)
- $506K→$2.8M
- Cohort dispersion (min → max)
- Transparency tier
- none
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 8 / 5
- vs category median 4 / 5 · above
Compared against 176 Recreation & Entertainment brands
vs Recreation & Entertainment averages
How Sandbox VR Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 36
- Opened
- 1
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 33
- Corporate units in the system
- % franchised
- 8%
- vs corporate-owned
- Net growth (yr3)
- +50.0%
- Net unit change last year
- 3-yr CAGR
- +200.0%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 2 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.
2
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 8 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 8
- Loan volume
- $10.1M
- Median loan
- $1.2M
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 5
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Sandbox VR's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 5 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Sandbox VR presents caution-level risk: rapid unit growth masks recent franchisee litigation, unprotected territory with high ongoing royalties, and unverified financial claims requiring deep due diligence before commitment.
Litigation (Item 3)
2 case reference(s): 1 pending, 3 settled.
Largest disclosed settlement: $152
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Galleros Robinson
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 41 / 100 rating
- 01HIGHRecent material litigation with Canadian franchisees settled July 2024, indicating franchise relationship strain and potential operational/support issues
- 02MINORNo protected territory despite high initial investment ($250K-$1.9M), creating direct competition risk from other franchisees or company-owned locations
- 03MINORRoyalty structure heavily favors franchisor ($1,000/month minimum per Holodeck regardless of revenue), creating cash flow pressure during slow periods
- 04MINORRapid 50% YoY unit growth (18→36 units in one year) raises sustainability questions and may indicate market saturation or aggressive recruitment over franchisee success
- 05MEDWide investment range ($250K-$1.9M) with limited clarity on what drives 7.5x variance, suggesting inconsistent site requirements or hidden costs
- 06MINORNo Item 19 financial performance representations provided; average net income of $688,829 is unverified and may not reflect typical franchisee experience
- 07MINORHigh capital intensity (VR equipment) creates technology obsolescence risk and difficulty recouping investment if business underperforms
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 | 2 |
| Protected territory | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 5 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 2 |
View Item 3 litigation summary
2 case reference(s): 1 pending, 3 settled.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 56 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- POS system
- Reservation Operating Platform
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Reservation Operating Platform
Item 20 · call current owners
Franchisee Contacts
3 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Sandbox VR · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Sandbox VR franchise?
The total investment to open a Sandbox VR franchise ranges from $251K – $1.9M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Sandbox VR franchise owners earn?
According to Item 19 of the Sandbox VR FDD, the average gross sales per unit is $1.7M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Sandbox VR's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Sandbox VR (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 Sandbox VR franchise locations are there?
As of their most recent FDD filing, Sandbox VR has 36 total units in the United States, including 1 franchised units and 33 company-owned units. 1 new units were opened in the latest reporting year.
Is Sandbox VR a good franchise to buy?
FranchiseVerdict rates Sandbox VR as a A-grade franchise with a risk score of 41 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.