Sandbox VR Franchise FDD, Profits & Costs (2025)
Sandbox VR is a cutting-edge franchise offering immersive virtual reality experiences. Players are transported into interactive digital worlds. Founded in 2016 by Steve Zhao in Hong Kong, Sandbox VR quickly became a leader in location-based VR entertainment.
With its headquarters still in Hong Kong, the company began franchising shortly after its launch and expanded globally. It now operates in major cities across the U.S., Europe, and Asia.
What makes Sandbox VR stand out is its use of advanced full-body motion capture technology and haptic feedback.
This technology creates an immersive and social gaming experience. Players engage in thrilling, collaborative adventures that blend physical and virtual realities. Each session generates video highlights, encouraging social media sharing and viral marketing. As of 2024, Sandbox VR has expanded to over 50 locations worldwide.
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Initial Investment
How much does it cost to start a Sandbox VR franchise? It costs on average between $1,427,000 – $2,890,000 to start a Sandbox VR franchised business.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of facility you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial franchise fee | $50,000 |
| 3 months’ rent | $50,000 to $107,000 |
| Security deposit | $16,667 to $100,000 |
| Construction and leasehold improvements | $675,422 to $1,675,698 |
| Architect and design fees | $25,949 to $130,151 |
| Operating Assets | $289 to $6,742 |
| Sandbox VR Start-Up Equipment Package | $475,000 to $500,000 |
| Signs | $9,581 to $49,827 |
| Opening inventory and supplies | $655 to $8,566 |
| Grand opening marketing | $20,000 to $25,000 |
| Training expenses | $2,000 to $5,000 |
| Reservation Platform, Licenses & Subscriptions | $16,000 to $27,000 |
| Miscellaneous opening costs | $10,527 to $105,054 |
| Additional Funds – 3 months | $75,000 to $100,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $250,719 to $1,875,464 |
| Without tenant allowances, the total could range from: | $1,427,090 to $2,890,038 |
Sandbox VR Financial Plan
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Sandbox VR Franchise Disclosure Document
Frequently Asked Questions
How many Sandbox VR locations are there?
As of 2024, Sandbox VR operates a total of 50 locations globally, with 37 of these being corporate-owned sites. The remaining locations are franchise-owned, with the company having launched its franchising program in 2019.
This rapid expansion is part of Sandbox VR’s ambitious growth strategy, which includes plans to open 280 additional franchise locations over the next few years.
What is the total investment required to open a Sandbox VR franchise?
The total investment required to open a Sandbox VR franchise ranges from $1,427,000 to $2,890,000.
What are the ongoing fees for a Sandbox VR franchise?
For a Sandbox VR franchise, the ongoing fees include a royalty fee of 5% of gross revenues. Additionally, franchisees are required to pay a marketing fee of 1% of gross revenues. These fees contribute to the continuous support and marketing efforts provided by the franchisor to help drive brand awareness and customer acquisition.
What are the financial requirements to become a Sandbox VR franchisee?
To become a Sandbox VR franchisee, you need a minimum net worth of $2 million and liquid capital of $1 million. These financial requirements are set to ensure franchisees have the necessary resources to support the startup and ongoing operations of the business.
Who owns Sandbox VR?
Sandbox VR is owned by its founder and CEO, Steve Zhao, who started the company in 2017. While Steve Zhao retains leadership, Sandbox VR has also attracted significant investments from notable venture capital firms like Andreessen Horowitz, along with individual investors such as Justin Timberlake, Katy Perry, and Kevin Durant.
Disclaimer
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