Business Overview

Opportunity to purchase established virtual reality arcade in a prime location in a major shopping center in Frisco, TX at the southwest corner of Lebanon Road and the North Dallas Tollway. Front door of the business is in direct view of a high volume , fast food double drive through window which is great free advertising. All state of the art equipment designed to provide kids and adults the highest quality virtual reality gaming experience in a family friendly atmosphere. Semi-absentee operated for only 6 hours a day.

Financial

  • Asking Price: $60,000
  • Cash Flow: N/A
  • Gross Revenue: N/A
  • EBITDA: N/A
  • FF&E: $10,000
  • Inventory: N/A
  • Inventory Included: N/A
  • Established: 2019

Detailed Information

  • Property Owned or Leased:N/A
  • Property Included:N/A
  • Building Square Footage:884
  • Lot Size:N/A
  • Total Number of Employees:1
  • Furniture, Fixtures and Equipment:N/A
About The Facility:

Size: 884 square feet Security Deposit: $4,038 Lease expiration: 10/31/2024 Total monthly rent: $3,794.85 Base monthly rental: $2,789.77 Additional rent: $996.08 (tenant pro-rated share of common area maintenance, building insurance & real estate taxes all of which are adjusted annually)

Is Support & Training Included:

Seller will provide on-site training after the purchase, provide on-call telephone assistance after completion of the training and sign a no competition agreement.

Purpose For Selling:

Semi-absentee owners desire to divest to focus on existing careers

Pros and Cons:

The virtual reality gaming industry is extremely popular in Europe and is slowly making its way to the states. Not loud like typical arcades, only real expense is rent - since product is virtual gaming, no real inventory. Prices per station are $44.99 for one hour and $24.99 for ½ hour. Can be booked for date nights, events, parties, and team building corporate events. Great location next to busy Chick fil-a double drive through, provides a type of free advertising. Sales not just retail traffic, but also Corporate events.

Opportunities and Growth:

Virtual reality industry is growing and stronger than ever. The owners started the business with the intention of operating it absentee as it is such a low overhead operation but like everyone else did not predict the long term effect of the Covid pandemic which limited the corporate event piece of the business. All slowly coming back but both owners have additional responsibilities with existing full time jobs and families and need to divest of this business as soon as possible. Perfect time and opportunity for a marketing minded individual to pick this business up and take it to the next level.

Additional Info

The company was founded in 2019, making the business 3 years old.

The company has 1 employees and is located in a building with disclosed square footage of 884 sq ft.
The property is leased by the company for $3,794.85 per Month

Why is the Current Owner Selling The Business?

There are all kinds of reasons people decide to sell operating businesses. However, the true reason and the one they tell you may be 2 absolutely different things. As an example, they may claim "I have way too many other obligations" or "I am retiring". For numerous sellers, these factors stand. But also, for some, these may just be excuses to attempt to conceal the reality of altering demographics, increased competitors, recent decrease in revenues, or an array of other factors. This is why it is extremely crucial that you not depend entirely on a seller's word, but instead, utilize the seller's response combined with your overall due diligence. This will paint a more reasonable image of the business's present scenario.

Existing Debts and Future Obligations

If the existing company is in debt, which numerous businesses are, then you will certainly need to consider this when valuating/preparing your deal. Many companies borrow money in order to cover points like stock, payroll, accounts payable, so on and so forth. Bear in mind that occasionally this can mean that revenue margins are too thin. Lots of organisations fall into a revolving door of taking on debt as a way to pay back other loans. Along with debts, there may also be future commitments to think about. There might be an outstanding lease on equipment or the building where the business resides. The business may have existing contracts with vendors that have to be met or may cause penalties if canceled early.

Understanding the Customer Base, Competition and Area Demographics

Exactly how do businesses in the area bring in brand-new consumers? Most times, businesses have repeat customers, which develop the core of their daily profits. Certain aspects such as new competitors sprouting up around the area, roadway building and construction, and also employee turnover can affect repeat customers as well as adversely influence future incomes. One vital point to think about is the area of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Certainly, the more individuals that see the business regularly, the better the chance to build a returning consumer base. A last idea is the general area demographics. Is the business situated in a densely inhabited city, or is it situated on the outskirts of town? Just how might the regional median home income influence future revenue prospects?