Sandbox VR Franchise Cost, Revenue & Review 2026
- Investment
- $1.4M – $2.5M
- Disclosed sales
- $1.7M
- gross sales, not profit
- SBA charge-off
- Under 10 loans (8)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Sandbox VR is a recreation franchise operating premium virtual-reality experience venues where groups play immersive VR adventures. Franchisees run the venues, managing bookings, VR equipment, staffing, and events.
FranchiseVerdict summary · 2026
A Sandbox VR franchise requires a total initial investment of $1.4M – $2.5M, including a $50K franchise fee and an ongoing 5.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.7M[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: 2026 filing · Data extracted: · Last cited check: · Staleness risk: low - the current year's filing
Evidence: strong✓ 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 scored5 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $1.4M – $2.5M
- 45th pct Recreation & …
- Avg gross sales
- $1.7M
- Incl. company outlets12th pct Recreation & …
- Royalty
- 5.0%
- 2nd pct Recreation & …
- Units
- 43
- 40th pct Recreation & …
- SBA charge-off
- N/A
Quick verdict · Recreation & Entertainment · color = vs category peers
Green = favorable by >10% vs Recreation & Entertainment 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 $1.4M – $2.5M including a $50K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.7M/year (median $1.8M) (includes company-owned outlets), with an estimated 18% cash-on-cash return (based on EBITDA).
- RISKVerdict B (Above average), verdict score 63/100 (higher is better).
- GROWTHPositive: net +7 franchised outlets in the latest year (7 opened, 0 closed); 26 signed but not yet open (Item 20).
- FLAGItem 4 discloses a bankruptcy of an officer or of a company an officer ran, not of the franchisor. Review Item 4 for details.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- GloStation Franchising USA, Inc.
- Parent company
- GloStation USA, Inc.
- FDD Item 1, page 9 of the 2026 FDD
- Ultimate parent
- Sandbox VR Inc.
- FDD Item 1, page 9 of the 2026 FDD
- CEO title
- Chief Executive Officer
- Steven Zhao
- Incorporated in
- Delaware
- HQ
- 4695 Chabot Drive, Suite 200, Pleasanton, California 94588
- Auditor
- Galleros Robinson, Certified Public Accountants (New York, NY)
- Audited financials
- Franchisor revenue
- $12.0M
- 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
- CEO
- Steven Zhao
- Headquarters
- California
- Founded
- 2017
- FDD year
- 2026
- States available
- 6
Can you afford it, and what does the money buy?
Entry cost runs 250% above the typical recreation & entertainment franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $75K | $100K |
| Equipment, build-out, other | $1.3M | $2.3M |
| Total initial investment | $1.4M | $2.5M |
Source: Sandbox VR 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
- $1.4M – $2.5M
- Middle of category vs category
- Liquid capital req'd
- $75K – $100K
- Middle of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 5.0%
- Set by a formula · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 6.0%
- vs 9–13% typical
- Payback period
- 5.6 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $25K |
| Renewal fee | $13K |
| Inventory (initial) | $655 – $9K |
| 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 run 113% above the recreation & entertainment norm.
Includes company-owned outlets
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 Sandbox VR 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
$2.0M
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
FDD-reported earnings
The FDD reports $636K as EBITDA. This is a disclosed figure, not our estimate — we publish no modelled profit for Sandbox VR.
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 Sandbox VR 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
Includes company-owned outlets
- Avg gross sales
- $1.7M
- Per unit, per year
- Median gross sales
- $1.8M
- Avg ebitda
- $636K
- Reported as EBITDA in FDD Item 19
- Cash-on-cash
- 17.9%
- Based on EBITDA / investment midpoint
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
- 3 outlets
- vs category median 5
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 6 / 10
- vs category median 4 / 10 · above
Compared against 165 Recreation & Entertainment brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
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 $1.7M/year in gross sales. Revenue-to-investment ratio: 0.9x. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 6.0% — below the Recreation & Entertainment median of 8.0%.
Disclosure
Transparency score 6/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence. Sample size of 3 outlets — treat as directional only.
Operator retention
System expanding at 900.0% CAGR over 3 years across 43 units — operators are staying and new ones are joining.
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 Recreation & Entertainment medians
How Sandbox VR Compares
Category median of published Recreation & Entertainment 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
- 43
- Opened
- 7
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 33
- Corporate units in the system
- % franchised
- 23%
- vs corporate-owned
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 26
- 0.60 per open outlet · Item 20 Table 5
- Projected new
- 22
- Franchisor's next-year forecast
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)
Where the owners are · Item 20 owner list
3 current owners across 2 states.
- NJ 2
- FL 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
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
- Under 10 loans (8)
- Insufficient SBA coverage: 8 loans, 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 (8)
- 5-yr charge-off
- Under 10 loans (8)
- Loans approved 2021+
- Active lenders
- 5
- 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
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Vortex Gaming Ltd./Vortex Gaming T1 Ltd. (Canadian franchisees) sued in Ontario Superior Court seeking to enjoin termination of franchise agreements and CAD $151.6M in damages; franchisor separately filed an AAA arbitration against Vortex; both matters resolved by a final settlement effective July 2, 2024.
Bankruptcy (Item 4)
Subject: an officer. An officer’s own bankruptcy or a company an officer ran, not the franchisor’s
GSUSA and nine affiliated Sandbox VR entities commenced voluntary Chapter 11 bankruptcy reorganization in the U.S. Bankruptcy Court, Central District of California on August 13, 2020; joint Chapter 11 plan confirmed November 25, 2020, final decree February 11, 2021.
Audited financials (Item 21)
Yes · Galleros Robinson, Certified Public Accountants (New York, NY)
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 63 / 100 verdict
- 01MINORFranchisor-affiliate Chapter 11 (GSUSA + affiliates, 2020)
- 02MINOR2 settled suits incl. CAD $151.6M franchisee damages claim
- 03MINOROnly 3 of 36 units franchised
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 population | 250,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Arbitration location | Pleasanton, California (within 10 miles of franchisor's then-current principal business address) |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 2 |
View Item 3 litigation summary
Vortex Gaming Ltd./Vortex Gaming T1 Ltd. (Canadian franchisees) sued in Ontario Superior Court seeking to enjoin termination of franchise agreements and CAD $151.6M in damages; franchisor separately filed an AAA arbitration against Vortex; both matters resolved by a final settlement effective July 2, 2024.
Items 10, 11
Training & Operations
- Classroom training
- 0 hrs
- On-the-job training
- 54 hrs
- Training location
- A Sandbox VR Business designated by the franchisor in the U.S.
- Ongoing training
- Required
- Site selection
- franchisor_approved
- Franchisor financing
- Not offered
- Item 10
- POS system
- Computer System / Reservation Operating Platform
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Computer System / Reservation Operating Platform
Item 20 · call current owners
Franchisee Contacts
3 owners to call
Name · phone · city · state. Extracted from FDD Item 20
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 $1.4M – $2.5M, 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. The median is $1.8M. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Sandbox VR?
Sandbox VR is franchised by GloStation Franchising USA, Inc.. Its parent company is GloStation USA, Inc.. The ultimate parent named in the FDD is Sandbox VR Inc.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Sandbox VR 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 Sandbox VR FDD and qualifies whose outlets they describe.
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 43 total units in the United States, including 10 franchised units and 33 company-owned units. 7 new units were opened in the latest reporting year.
Is Sandbox VR a good franchise to buy?
FranchiseVerdict rates Sandbox VR as a B-grade franchise with a verdict score of 63 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
Are you the franchisor?
If you represent Sandbox VR, you can request corrections or provide updated information.
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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.