How Much Does a AR Workshop Franchise Cost?
Data from the 2024 Franchise Disclosure Document
Investment Summary
Total Investment
$134K – $230K
Franchise Fee
$35K
Royalty
the greater of 6% of Monthly Gross Sales or $500/month
Ad Fund
1.0%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for AR Workshop is $35K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a AR Workshop franchise requires a total investment of $134K – $230K. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $50K to $80K.
Ongoing Costs
Beyond the initial investment, AR Workshop franchisees pay ongoing fees. The royalty structure is: the greater of 6% of Monthly Gross Sales or $500/month. The advertising or brand fund contribution is 1.0% of gross sales. There is also a technology fee of $135.
Net Worth & Liquid Capital Requirements
AR Workshop requires working capital of $50K – $80K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to AR Workshop's Item 19 financial performance representation:
Median gross sales: $120K
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View AR Workshop?
SBA Loans Issued
16
Default Rate
9.1%
The SBA (Small Business Administration) tracks loan performance for franchise brands. AR Workshop has 16 SBA-backed loans on record. The default rate is 9.1%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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