VALHALLAN

Item 7 lays out the steep entry: $166,060-$329,850 total investment, including a $39,000 franchise fee. Ongoing fees hit hard with 7% royalties (minimum $500/month), plus an Electronic Systems Fee of $250 base + $50 per camera + $100 per door monthly—no marketing fund yet. Item 19, disclosed for their 8 franchised units (1 corporate), paints a grim picture: average gross revenue of $5,631 against a median of $4,074. At these levels, even after costs, profitability looks elusive without massive scaling. SBA data underscores financing reality, with 11 loans averaging $164,836, suggesting lenders see potential but at scale.

System health raises flags amid hype. Only 8 locations after two years, with 2 transfers and projected 32 new units signaling aggressive expansion ambitions. No brand ad fund means franchisees shoulder marketing, critical for esports visibility. For smaller-market plays, low revenues hint at validation struggles—is Valhallan a high-risk pioneer or a niche bust? Crunch these FDD metrics against your capital and local gaming demand before committing.