Risk Score
Pending analysis
Investment Range
$198,900 - $442,400
Franchise Fee
$47,500
Total US Locations
9
Business Summary
Game Kastle Universe, LLC operates Game Kastle businesses, which are retail game stores and game event centers. These businesses sell a variety of hobby and gaming products, such as card games, role-playing games, board games, tabletop games, miniatures, collectibles, and paints. The stores aim to provide a clean, fun, and family-friendly environment with friendly staff.
Corporate History
Game Kastle Universe, LLC was formed in California on April 18, 2017. The company operates under its corporate name and as Game Kastle. It began offering Game Kastle franchises in June 2017. Game Kastle Universe, LLC does not operate any other lines of business and does not have a predecessor or parent entity. Its affiliate, Hobby Games Distribution, Inc. d/b/a Golden Distribution (HGDI), is an approved supplier of Game Kastle inventory and the point-of-sale system, but HGDI does not operate a Game Kastle Business.
Financial Overview
Investment Range
$198,900 - $442,400
Franchise Fee (Low)
$47,500
Franchise Fee (High)
$47,500
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$35,600
Equipment Costs (High)
$76,100
Working Capital
$52,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Game Kastle Universe, LLC's financial statements are audited and received an unqualified opinion from the independent auditor. No significant financial health concerns, such as a 'going concern' qualification or issues with working capital, were noted in the auditor's report or the financial statement notes.
Financing Details
Game Kastle Universe, LLC does not offer any direct or indirect financing to franchisees. It also does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
9
Franchised Units
5
Corporate Units
4
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
1
Litigation Summary
Game Kastle Universe, LLC had one legal action disclosed in September 2022. This was a Consent Order with the State of Washington, Department of Financial Institutions Securities Division. The issue arose because Game Kastle Universe, LLC sold an unregistered franchise to a California resident who intended to open a location in Washington. As part of the resolution, Game Kastle Universe, LLC agreed to cease and desist from violating Washington's franchise registration requirements and paid $2,000 in investigator costs.
Bankruptcy History
Game Kastle Universe, LLC has no bankruptcy history to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Game Kastle Universe, LLC franchisees must provide written notice between 275 and 365 days before the current term expires. They must be in good standing, without default under their franchise agreement or any affiliate agreement, and not have received more than three default notices in the preceding 12 months. Franchisees must cure any noted deficiencies 90 days before expiration, sign the then-current successor franchise agreement (which may have different terms, including higher fees), and sign a general release. A non-refundable renewal fee of $20,000 is required, and franchisees must renovate or upgrade their premises, equipment, tools, technology, and operations to meet current brand standards 60 to 180 days before expiration. Additionally, they must have the right to possess their premises for the successor term and fulfill any other reasonable requirements from Game Kastle Universe, LLC.
Training & Support Program
Franchisor Assistance
Game Kastle Universe, LLC provides several forms of assistance to its franchisees. Before opening, this includes offering an initial training program for up to four people at no charge, lending a confidential operations manual, advising on suitable site selection (with franchisor approval required for the site and lease), designating a territory, providing design and layout specifications, offering materials and consultation for grand opening marketing, and providing one day of on-site training at the franchisee's first Game Kastle Business. Ongoing assistance includes informing franchisees of mandatory standards and procedures, providing advice on operations based on reports or inspections, offering additional training for newly hired personnel, refresher courses, or special requests (which may incur additional fees), and allowing continued use of confidential materials and trademarks. Game Kastle Universe, LLC also provides a list of designated and approved suppliers. Optionally, Game Kastle Universe, LLC may modify and update the system, conduct periodic site visits (reimbursable if requested by franchisee), maintain a Brand Fund, and hold national or regional conferences.
Initial Training Hours
40
Training Location
Santa Clara, CA, and Online
Ongoing Support
After opening, Game Kastle Universe, LLC franchisees receive ongoing support including regular updates on mandatory standards, specifications, and operating procedures. They can request advice and guidance on their business operations through written materials, electronic media, or telephone during regular business hours. Game Kastle Universe, LLC also offers additional training courses for newly hired personnel, refresher training, and advanced or remedial training, for which fees may apply. Franchisees are allowed to continue using confidential materials and trademarks, and Game Kastle Universe, LLC provides a list of designated suppliers. Optionally, Game Kastle Universe, LLC may conduct periodic visits to assist with operations and management, and franchisees are required to attend any national or regional conferences.
Franchise Requirements
Ideal Candidate Profile
Game Kastle is seeking individuals who will be actively, continuously, and substantially involved in the personal, hands-on supervision and full-time operation of their Game Kastle Business. If the franchisee is an entity, a Principal Owner with at least a 10% equity interest must take on this role. Ideal candidates should be of good moral character, possess sufficient business experience, aptitude, and financial resources to own and operate a Game Kastle Business, and otherwise meet all of Game Kastle's then-applicable standards for franchisees.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
Game Kastle Universe, LLC defines its territories based on geographic area and demographic characteristics. Each territory will either include a minimum population of 350,000 persons or extend within a 10-mile radius around the Game Kastle Business location.
Staffing Notes
Game Kastle Universe, LLC requires franchisees to determine appropriate staffing levels for their Game Kastle Business to comply with the franchise agreement and system standards. Franchisees are solely responsible for hiring, training, supervising, and managing their employees or independent contractors. This includes all employment-related decisions such as wages, benefits, work assignments, and compliance with labor laws. Employees and independent contractors are the franchisee's responsibility, not Game Kastle Universe, LLC's. Franchisees must ensure their employees and contractors understand this relationship and sign prescribed acknowledgment forms.