AR WORKSHOP

Item 7 lays out the initial investment from $134,312 to $229,708, covering the $35,000 franchise fee, buildout for a 1,500-2,500 sq ft boutique workshop, equipment, inventory, and three months' operating capital. Ongoing fees hit 6% royalty plus 1% brand fund, tacked with $135 monthly tech fee and $420 yearly ($35/mo) marketing software—totaling around 8-9% of sales effectively. Item 19 shines here: average gross revenue clocks $127,876 across units, median $119,842, suggesting many hit six figures but with variability; at median sales and typical 25-30% margins post-expenses (after fees, rent ~$4K/mo, staff), owners might net $30K-$45K yearly—decent for a creative services play but not explosive.

System metrics flag caution: 114 franchised locations (1 corporate) after dropping 7% from 123 in 2022 to 114 in 2023, with 10 terminations and 17 transfers signaling some churn amid modest 4 projected new units. SBA data bolsters appeal—19 loans averaging $112,811 with just 5.3% default rate, better than many startups. For hands-on entrepreneurs eyeing suburban markets with BYOB crowds and youth programs, AR Workshop offers supported entry into growing DIY trends, but the contraction and mid-tier revenues mean vetting local demand closely before committing.