About Fantasy Claw Arcade Franchise
Fantasy Claw Arcade is an entertainment franchise that operates claw machine and arcade game centers.
The brand launched its franchise program in 2025, bringing the classic claw machine experience to modern retail spaces with a curated selection of prizes and engaging game setups.
The franchise fee is $40,000.
Fantasy Claw Arcade Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $40,000 | One-time payment upon signing |
| Royalty Fee | 6% to 7% of monthly Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 4% of monthly Gross Sales (currently 2%) | National brand fund |
| Total Investment Range | $245,300 – $442,000 | Includes build-out, inventory, working capital |
The investment range of $245K–$442K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% to 7% of monthly Gross Sales) and marketing fee (Up to 4% of monthly Gross Sales (currently 2%)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee | $40,000 | $40,000 |
| Development Services Fee | $10,000 | $10,000 |
| Architectural/Engineering Fees and Project Management | $0 | $15,000 |
| Professional Services | $2,000 | $8,000 |
| Permits and Licensing | $3,000 | $17,000 |
| Rent | $0 | $0 |
| Security Deposits | $3,000 | $30,000 |
| Leasehold Improvements | $15,000 | $75,000 |
| Furniture, Fixtures, Equipment | $65,000 | $100,000 |
| Interior Décor | $6,000 | $12,000 |
| Exterior Signage | $5,000 | $10,000 |
| Menu Boards | $800 | $2,000 |
| POS System | $1,500 | $3,000 |
| Training | $15,000 | $15,000 |
| Opening Inventory | $15,000 | $30,000 |
| Arcade Launch Marketing Plan | $30,000 | $30,000 |
| Pre-Opening Mock Operations | $3,000 | $3,000 |
| Insurance (3 Months) | $1,000 | $2,000 |
| Additional Funds – 3 Months | $30,000 | $40,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Greater of $10,000 or 5% of the sales price (but not to exceed $20,000) |
| Renewal Fee | $10,000 |
| Technology Fee | 1% of Gross Sales (currently not charged) |
| Audit Fee | Costs of audit plus interest |
| Cooperative Advertising | Up to 2% of your monthly Gross Sales |
| Arcade Launch Marketing Plan | $10,000 (second installment) |
| Training for Additional Team Members/Managers in Las Vegas | $1,000 per person per 5 days (right to increase to $5,000 per person per 5 days) |
| Training for Additional Team Members/Managers at your location | $2,000 per 5 days (right to increase to $7,500 per person per 5 days) |
| Extensive On-Site Training Program | $10,000 |
| Copy of Manual | Paper Copy $1,000 (electronic copy available at no charge) |
| Approval of New Supplier | Our costs incurred in approving supplier |
| Relocation Fee | $5,000 |
| Bookkeeping Services | $100 per hour |
| Guest Complaint Resolution | Currently $50 per hour (not to exceed $150 per hour) |
| Administrative/Late Fee | $250 |
| Interest | Lesser of 1.5% per month or highest commercial contract interest rate law allows |
| Costs and Attorneys’ Fees | Will vary based on circumstances |
| Indemnification | Will vary based on circumstances |
| POS System | $134 per month |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately two (2) to three (3) weeks |
| Classroom Training | 48 |
| On-the-Job Training | 100 |
| Training Location | Las Vegas |
| Additional Training | If you request our trainers to provide additional or supplemental training, fees will be $1,000 per trainer per five (5) days for training in Las Vegas, or $2,000 per five (5) days at your location plus travel expenses. An Extensive On-Site Training Program may be required for $10,000. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive for single-unit franchisees; protected for multi-unit developers with exceptions. |
| Exclusive Territory | No |
| Description | The designated Territory under a Development Rights Agreement will be defined by radius, zip code boundaries, county boundaries, highways, physical landforms, city or municipality boundaries, and other factors we deem appropriate. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $10,000 |
| Renewal Conditions | To renew, you must request a business review 12-9 months before term expiration, formally notify us 6 months before expiration, substantially comply with obligations, and (at our option) remodel, upgrade, re-equip, or relocate the Arcade. You must sign the then-current Franchise Agreement and releases. |
| Transfer Fee | Greater of $10,000 or 5% of the sales price (but not to exceed $20,000) |
| Transfer Conditions | Transferee must qualify, not be in a competitive business, complete training, and sign our then-current form of guaranty. All amounts due to franchisor must be paid, reports submitted, and no breach. Transferee must agree to upgrade/remodel the Arcade. Franchisor determines if sale terms and financing adversely affect operations. |
| Termination for Cause | We can terminate without notice for non-curable defaults (e.g., bankruptcy, abandonment, fraud, multiple defaults, false records, underpayment of royalties, employment law violations, loss of licenses, failure to open within 12 months, loss of premises). For curable defaults (e.g., failure to remodel, failure to pay monies owed, unauthorized ownership transfer, public health/safety threat, unauthorized use of System/Marks, continued law violations, discrimination), we provide 5 days' notice to cure, or 30 days for failure to pay vendors. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, no owning interest in, performing services for, or loaning money to a competitive business. After termination/expiration, no owning interest in or performing services for a competitive business at the Arcade’s site, within 5 miles of the Arcade’s site, or within 3 miles of another Fantasy Claw Arcade then in operation or under construction. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You must designate one of your individual owners with at least a 20% ownership interest to serve as your “Managing Owner.” The Managing Owner is responsible for managing the Arcade and, along with managerial employees, must devote full-time energy to manage and operate the Arcade. |
| Required Suppliers | Our then-current trade dress; point-of-sales system, including the computer hardware and software further described in Item 11; arcade machines, arcade fixtures, furniture, and other equipment as listed in the Manual; and specified light fixtures. |
| Supply Restrictions | You must use only approved or designated suppliers as your exclusive suppliers and service providers (which suppliers may include or be limited to us and/or certain of our affiliates). |
| Franchisor Revenue from Suppliers | We and/or our affiliates have the right to derive revenue—in the form of promotional allowances, volume discounts, commissions, other discounts, performance payments, signing bonuses, rebates, marketing and advertising allowances, free products, and other economic benefits and payments—from suppliers that we designate, approve, or recommend for some or all Fantasy Claw Arcades on account of those suppliers’ prospective or actual dealings with your Arcade and other Fantasy Claw Arcades. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease, or obligation. |
Fantasy Claw Arcade Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Fantasy Claw Arcade Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Fantasy Claw Arcade System Growth
Fantasy Claw Arcade currently operates 0 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2024 | 1 | 0 | 1 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 16 states: CALIFORNIA, CONNECTICUT, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, OREGON, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, WISCONSIN
Franchisor Financials (Item 21)
Audited by KEZOS & DUNLAVY for year ending December 31.
Fantasy Claw Arcade Franchise — FAQ
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