About FRIENDLY FIRE USA Franchise
Friendly Fire is an esports arena franchise offering a dedicated gaming destination where customers can access licensed video games, compete in tournaments, attend gaming events, and enjoy quick service food and beverages.
Franchising since 2022, the brand taps into the explosive growth of competitive gaming and esports entertainment.
The initial franchise fee is $49,500.
FRIENDLY FIRE USA Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 | One-time payment upon signing |
| Royalty Fee | 8% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently 2% of Gross Revenue up to 3% (Brand Marketing Fee) | National brand fund |
| Total Investment Range | $215,900 – $385,680 | Includes build-out, inventory, working capital |
The investment range of $216K–$386K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (8% of Gross Revenue) and marketing fee (Currently 2% of Gross Revenue up to 3% (Brand Marketing Fee)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Construction, Network Installation, and Leasehold Improvements | $25,000 | $45,000 |
| Furniture, Fixtures and Proprietary Equipment | $25,000 | $50,000 |
| Computers and Gaming Consoles | $64,000 | $132,000 |
| Signage | $3,000 | $5,000 |
| Proprietary Software | $2,900 | $2,900 |
| Grand Opening Marketing | $5,000 | $5,000 |
| Initial Inventory | $2,000 | $4,000 |
| Prepaid Rent and Lease Deposits | $11,400 | $25,200 |
| Utility Deposits | $1,000 | $3,000 |
| Insurance Deposits – 3 Months | $1,800 | $3,780 |
| Professional Fees | $5,000 | $15,000 |
| Printing, Stationary and Office Supplies | $300 | $300 |
| Additional Funds – 3 months | $20,000 | $45,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | 50% of then current Initial Franchise Fee |
| Technology Fee | $100 per month |
| Audit Fee | Actual costs incurred by us |
| Additional Training Fee for a Substitute or New Manager or Principal | Not to exceed $1,000 per attendee |
| Customer Rewards, and Gift Cards | Currently not implemented but may be implemented in future |
| Friendly Fire Proprietary Software (continuing license fee) | $300 per month |
| Annual Conference | Not greater than $1,500 |
| Ongoing Training | Approximately $600 - $1,500 per attendee |
| Non-Compliance Fee | $250 per day, per occurrence |
| Insurance Policies (unpaid premiums) | Amount of unpaid premiums plus our expenses in obtaining the policies |
| Interest (on overdue amounts) | The lesser of 18% per annum or the maximum legal rate allowable by the State |
| Dishonored Check, ACH draft, or other form of payment | $50 per occurrence |
| System Modifications | The monetary obligation for System Modifications will not exceed 50% of your initial investment |
| Inspection and Testing Fee | The lesser of $1,000 or our actual testing or inspection costs, plus reimbursement of our related travel, lodging, and salary costs |
| Cost of Enforcement | All costs including attorneys’ fees |
| Late fee | $100 plus interest on the unpaid amount at a rate equal to 18% per month |
| Customer complaint resolution | Our actual expenses |
| Liquidated damages | An amount equal to Royalty fees and Marketing Fee Contributions for the lesser of (i) 24 months or (ii) the remaining weeks of the franchise term |
| Indemnity | Our actual costs and losses from any legal action |
| Prevailing party’s legal costs | Our attorney fees, court costs, and other expenses of a legal proceeding |
| Local Marketing | 3% of Gross Revenue |
| Advertising Cooperative | Up to 1% of Collected Gross Revenue (when implemented) |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 49.0 hours |
| Classroom Training | 49.0 hours |
| Training Location | Chicago, IL or another location we designate including via any virtual platform |
| Additional Training | Additional training for a substitute or new manager/principal may cost up to $1,000 per attendee. Ongoing training programs or seminars, not exceeding one session per year and three days, may be required, with costs ranging from $600 to $1,500 per attendee. Annual conventions are mandatory, with a registration fee not exceeding $1,500 per person. Franchisees are responsible for all travel, lodging, and wage expenses for attendees. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Maximum of 1.5 miles radius |
| Description | A specified radius, maximum of 1.5 miles, with its central point located at the Esports Arena’s main entrance. This protected area excludes venues considered “Captive Markets” (e.g., department stores, shopping malls over 350,000 sq ft, amusement parks, airports, train stations, casinos, hospitals, college campuses, military bases, etc.) and Reserved Rights of the franchisor. The franchisor will not establish or grant another franchise within your Protected Area, but may grant franchises outside that overlap. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | Two consecutive five-year terms |
| Renewal Fee | 50% of then current Initial Franchise Fee |
| Renewal Conditions | To renew, the franchisee must have fully complied with the Franchise Agreement, updated Esports Arena equipment, satisfied all monetary obligations including the renewal fee, not be in default, timely notified intent to renew, signed a current Franchise Agreement (which may have different terms and higher fees), complied with current qualifications and training requirements, and signed a general release. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Franchisor consent is required for any transfer. Conditions include: franchisee compliance with Section 19, all obligations owed to franchisor are paid, franchisee and transferee execute a general release, prospective transferee meets franchisor's standards (management, business, financial, character, capabilities, business reputation, credit rating), transferee signs current franchise agreement (which may have different terms/fees), transferee executes a general release regarding representations, franchisee provides all related contracts/documentation, transferee obtains all necessary third-party consents/approvals, transferee pays a $10,000 transfer fee, and transferee's designated manager completes initial training. |
| Termination for Cause | The franchisor can terminate the agreement immediately without cure period for non-curable defaults such as failure to timely establish/equip the business, designated manager failing training, failure to maintain required licenses for over five business days, material misrepresentation in application, conviction of a felony or crime affecting reputation, unauthorized disclosure of confidential information, abandonment of business for five or more consecutive days, unauthorized transfer of interest, or failure to maintain designated manager supervision after death/incapacity. Curable defaults (e.g., failure to comply with law, failure to pay amounts due, failure to maintain insurance, material breach of other provisions) allow for cure periods of 5, 10, or 30 days depending on the breach. |
| Non-Compete Period | During the term of the franchise and for two years after termination or expiration |
| Non-Compete Details | During the term, the franchisee and its owners/family, officers, directors, executives, managers, and professional staff are prohibited from diverting business, causing prejudice to Marks/System, or owning/working for a competitive business. For two years after termination/expiration, these individuals are prohibited from owning/working for a competitive business within the former Protected Area, within 25 miles from its perimeter, or within any other Friendly Fire franchise's protected area, or soliciting customers/associates to compete. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee or a designated manager must provide direct, full-time, day-to-day supervision of the Franchised Business, working at least 35 hours per week (excluding vacation/sick leave). The franchisee acknowledges the business is not a "passive" investment and must complete initial training. Designated managers are required to sign nondisclosure and non-competition agreements. The franchised business must be open at least 10 hours per day, seven days a week, with up to three major holidays off per year. |
| Required Suppliers | The franchisor is the only designated supplier for certain furniture, fixtures, and equipment. Franchisees must purchase certain types of computers and gaming consoles from a designated or approved supplier. All materials bearing the Marks (stationary, business cards, brochures, apparel, signs, displays) must be purchased directly from the franchisor or its designated/approved suppliers. All marketing materials must comply with franchisor standards and be approved. Consumable goods must follow franchisor recipes and use approved products. The Friendly Fire proprietary software must be installed from the franchisor or its affiliate. |
| Supply Restrictions | Franchisees may only offer and sell products and services approved by the franchisor and must discontinue offering any disapproved items. All products, supplies, equipment, technology systems, food items, and services must be authorized and designated in writing by the franchisor. For items without a designated supplier, franchisees must purchase from suppliers meeting franchisor specifications and standards. The franchisor retains the right to add or remove approved suppliers. |
| Franchisor Revenue from Suppliers | The franchisor and its affiliates derive revenue from franchisee purchases and leases of equipment, inventory, and operating supplies. However, for the fiscal year ending December 31, 2022, neither the franchisor nor its affiliates received any revenue from these types of purchases or leases by franchisees. |
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 other obligation. |
FRIENDLY FIRE USA Franchise Earnings — Item 19
FRIENDLY FIRE USA does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
FRIENDLY FIRE USA 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.
FRIENDLY FIRE USA System Growth
FRIENDLY FIRE USA currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 0 | 0 |
| 2022 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, Wisconsin
Franchisor Financials (Item 21)
Audited by ADRIAN WEBB, CPA for year ending December 31.
FRIENDLY FIRE USA Franchise — FAQ
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