Shift ArcadeFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A Shift Arcade franchise requires a total initial investment of $250K – $554K, including a $38K franchise fee and an ongoing 3.5% royalty[2]. Per the 2025 FDD, average unit revenue was $30K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $250K – $554K
- 19th pct Recreation & …
- Avg gross sales
- $30K
- 1st pct Recreation & …
- Royalty
- 3.5%
- 1st pct Recreation & …
- Units
- 1
- 4th pct Recreation & …
- SBA default
- N/A
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 0.1x revenue per dollar invested, this system underperforms the typical 1.5-2.5x range.
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
Bottom line
- Total investment $250K – $554K including a $38K franchise fee, 3.5% ongoing royalty.
- Average unit revenue of $30K/year.
- Verdict A (Top Quintile) with a risk score of 52/100.
- Revenue data based on only 1 reporting unit. Treat as directional, not definitive. Ask franchisees directly for current unit economics.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Shift Arcade Ventures LLC
- CEO title
- President
- Paul Baillie
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- WY
- HQ
- 1603 Capitol Avenue, Suite 415 #921540, Cheyenne, WY 82001
- Auditor
- Kezos & Dunlavy
- Unaudited
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
Shift Arcade franchisees operate entertainment venues featuring arcade games, redemption machines, and interactive gaming experiences. Day-to-day operations include managing customer flow, maintaining arcade equipment and coin/card systems, staffing, inventory management, and prize fulfillment.
- CEO
- Paul Baillie
- Headquarters
- WY
- Founded
- 2025
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 15 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $19K | $38K | |
| Franchise Location - Rent/Security Deposit | $3K | $15K | |
| Leasehold Improvements | $25K | $80K | |
| Architectural and/or Engineering Fees | $8K | $15K | |
| Fixtures, Furniture, Decor and Non Simulator Equipment - Computer, TV | $10K | $20K | |
| 6 to 12 Racing Simulators | $137K | $273K | |
| Racing Simulator Assembly | $0 | $20K | |
| Uniforms, Inventory & Supplies - including Snacks, Drinks & Beverages | $2K | $6K | |
| Signage (Interior / Exterior) | $5K | $13K | |
| Utility Deposits, Licenses, Permits | $3K | $5K | |
| Legal, Accounting, Licenses and Insurance | $8K | $10K | |
| P.O.S. System & Installation, Security & Cameras, Alarm System Set-up Fees, All Software | $2K | $5K | |
| Opening Advertising | $2K | $5K | |
| Franchisee / Certification Training | $3K | $5K | |
| Additional Funds - Initial 3 Months | $25K | $45K | |
| Total initial investment | $250K | $554K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
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
$5K
18.5% margin
Unlevered ROIC
1%
EBITDA / total invested capital
Payback
79.8 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $250K – $554K
- Better than avg vs category
- Liquid capital req'd
- $25K – $45K
- Better than avg vs category
- Franchise fee
- $19K – $38K
- Better than avg vs category
- Royalty
- 3.5%
- Gross Revenue · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 4.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 3.5% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Training fee | $3K |
| Transfer fee | $13K |
| Renewal fee | $5K |
| Total fee load | 4.5% of rev |
A 4.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $30K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Affiliate
- Sample size
- 1 units
- vs category median 5 · small
- Range (low → high)
- $20K→$39K
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Transparency
- 3 / 5
- vs category median 4 / 5 · below
Compared against 176 Recreation & Entertainment brands
Revenue is only 0.1x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Recreation & Entertainment averages
How Shift Arcade Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1
- Opened
- 0
- 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
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
- Multi-unit owners
- 1.0%
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 2
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 14 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.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Shift Arcade is an extremely early-stage, single-unit franchise with unproven scalability, undisclosed profitability metrics, and a tiered royalty structure that punishes growth—presenting substantial operational and financial risk.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
No audited financials on file
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 52 / 100 rating
- 01MINOROnly 1 operating unit with unknown growth trajectory creates severe lack of proof of concept and scalability
- 02MEDNet income not disclosed despite $333k average revenue claim—unable to validate profitability or ROI
- 03MINORRoyalty structure heavily penalizes franchisees #4+ (7% vs 3.5%)—incentive misalignment and potential resentment
- 04MEDHigh investment range ($249.75k-$554k) with no disclosed net income creates unfavorable risk/reward ratio
- 05MINORNo Item 19 (Financial Performance Representations) provided—franchise may lack substantiated earnings claims
- 06MEDSingle unit system suggests either new brand, failed expansion, or undisclosed closures; unit growth unknown
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 | 10 years |
| Territory type | Radius or Population |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 10 mi |
| Territory population | 200,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 60 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | San Ramon, California |
| Jury trial waiver | Yes |
| Governing law | Wyoming |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 24 hrs
- On-the-job training
- 64 hrs
- Training location
- San Ramon, CA
- Field support
- 24 hrs/yr
- On-site visits per year
- Time to open
- 12 mo
- From signing to launch
- POS system
- Square
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Square
Item 20 · call current owners
Franchisee Contacts
15 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Shift Arcade · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Shift Arcade franchise?
The total investment to open a Shift Arcade franchise ranges from $250K – $554K, with an initial franchise fee of $38K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Shift Arcade franchise owners earn?
According to Item 19 of the Shift Arcade FDD, the average gross sales per unit is $30K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Shift Arcade's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Shift Arcade (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 Shift Arcade franchise locations are there?
As of their most recent FDD filing, Shift Arcade has 1 total units in the United States, including 0 franchised units and 1 company-owned units.
Is Shift Arcade a good franchise to buy?
FranchiseVerdict rates Shift Arcade as a A-grade franchise with a risk score of 52 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.
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.