AR Workshop franchise
2024 filing · April 18, 2024Fewer locationsShares sales figures
AR Workshop at a glance
A DIY studio running hands-on classes to make custom home decor from wood, canvas and other materials, plus take-home kits. At the end of 2023 there were 115 AR Workshop locations in the US, 114 franchised and 1 company-owned.
The business
- Franchisor
- AR Workshop Franchising, LLC
- The company that sells the franchises
- Franchisor based in
- Pineville, North Carolina
What you pay
- Cost to open
- $134K–$230K
- Fee, build-out and opening working capital
- Franchise fee
- $35,000
- Paid once, when you sign
- Royalty
- 6%
- The greater of 6% of monthly gross sales or $500 a month
- Brand fund
- Yes
- 1% of monthly gross sales or $200 a month, whichever is more; it can rise to 2%
- Renewal fee
- $5,000
- When the agreement ends and you sign again
- Agreement length
- 10 years
- Territory
- Protected
- Protected territory
- Franchisor financing
- None offered
Where it is
- US locations, 2023
- 115
- Franchised and company-owned
- Franchised
- 114
- Company-owned
- 1
- Change in 2 years
- −24
- Franchised locations, 2021–2023
- States
- 33
- Most in North Carolina, California and Florida
From AR Workshop Franchising, LLC’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
AR Workshop among all franchises with the same figure.
| Figure | AR Workshop | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $182,010 | Costs less than 72% of franchises |
| Franchise feePaid once, when you sign | $35,000 | Lower than 61% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 115 | More than 78% of franchises |
| Sales per locationYearly, as the brand reports it | $127,876 | Lower than 98% of brands that share sales figures |
| Sales against cost to openYearly sales over the cost midpoint | 0.7× | Lower than 92% of brands that share sales figures |
How much a AR Workshop franchise costs
Opening one AR Workshop costs an estimated $134,312 to $229,708. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are additional funds - 6 months ($50,000 to $80,000) and initial franchise fee ($28,000 to $35,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $28,000 | $35,000 | |
| Leasehold – first 3 months | $6,000 | $15,000 | |
| Leasehold Improvements | $2,800 | $14,890 | |
| Signage | $375 | $5,530 | |
| Furniture, fixtures, and equipment | $8,387 | $12,849 | |
| Initial Inventory | $19,621 | $27,105 | |
| Initial Inventory for DIY-to-Go | $165 | ||
| Computer/iPad, Software, Printers, Credit Card Processor, and Design Equipment | $5,710 | $7,660 | |
| Brochures and Other Printed Materials | $1,964 | $2,144 | |
| Deposits and Licenses | $500 | $5,000 | |
| Training living expenses | $1,100 | $3,300 | |
| Insurance | $150 | $500 | |
| Accounting and Legal Services | $500 | $5,000 | |
| Grand Opening Marketing and Events | $4,675 | $10,200 | |
| Local Advertising | $1,350 | ||
| Email Accounts, Social Media Management Tools, and Marketing Software Fee | $610 | ||
| Marketing Launch Fee | $2,000 | $3,000 | |
| Technology Fee | $405 | ||
| Additional Funds - 6 Months | $50,000 | $80,000 | |
| Total | $134,312 | $229,708 | |
Source: AR Workshop Franchising, LLC, 2024 filing, page 22
AR Workshop franchise fee
The franchise fee is $35,000. You pay it when you sign the franchise agreement.
Source: AR Workshop Franchising, LLC, 2024 filing, page 11
Royalty and ongoing fees
| Royalty | The greater of 6% of monthly gross sales or $500 a month. |
|---|---|
| Brand or marketing fund | 1% of monthly gross sales or $200 a month, whichever is more; it can rise to 2%. |
| Renewal Fee | $5,000 |
| Minimum Local Advertising Spend | $450/month |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: AR Workshop Franchising, LLC, 2024 filing, page 13
Other fees as filed, from pages 13–14. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures AR Workshop publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
- Average sales
- $127,876
- Median sales
- $119,842
Yearly figures for 2023, covering franchised workshops open all of 2023 (99 locations). The average is about 0.7 times the midpoint of the cost to open.
Sales are what a location takes in before rent, payroll, royalties and other costs, not what its owner keeps.
Source: AR Workshop Franchising, LLC, 2024 filing, pages 53–54
SBA loans to AR Workshop franchisees
Lenders approved 16 SBA 7(a) loans for AR Workshop franchisees from 2018 to 2025, $1.72M in all. Of the 13 that have ended, 11 were paid in full and 2 were charged off. The other 3 haven’t ended yet.
A charged-off loan is one written off as uncollectible. See SBA franchise loans for how 7(a) and 504 loans work.
Source: SBA 7(a) and 504 loan data, as of September 30, 2026
How AR Workshop compares
Of the 168 entertainment franchises on this site, AR Workshop is the 51st cheapest to open and the 14th largest by number of locations.
| Figure | AR Workshop | Typical entertainment brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $134K | $286K | $222K |
| Cost to open, high end | $230K | $598K | $477K |
| Franchise fee | $35K | $45K | $40K |
| Royalty | 6% | 6% | 6% |
| Sales per location | $128K | $756K | $794K |
| US locations | 115 | 8 | 21 |
| Closed or left per year | 8.5% | 4.5% | – |
| Change in franchised locations, 2 yrs | −17.4% | +32.5% | – |
| Shares earnings figures | Yes | 113 of 168 | 2,147 of 3,352 |
Typical is the median across the 168 brands in entertainment franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2019 | 131 (+34) | 3 | – | – |
| 2020 | 138 (+7) | 2 | – | – |
| 2021 | 144 (+6) | 1 | +15 | −9 |
| 2022 | 123 (−21) | 1 | – | – |
| 2023 | 114 (−9) | 1 | +4 | −13 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: franchise failure rates.
Over 5 years, from the start of 2019 to the end of 2023, franchised locations went from 97 to 114 (+17, +18%). The earlier years come from the brand's 2022 and 2023 filings.
Source: AR Workshop Franchising, LLC, 2024 filing, page 55
2019: AR Workshop Franchising, LLC, 2022 filing, page 55
2020: AR Workshop Franchising, LLC, 2023 filing, page 56
Where AR Workshop locations are
At the end of 2023, AR Workshop had locations in 33 states. The most are in North Carolina, California and Florida.
- North Carolina12
- California8
- Florida8
- Michigan7
- Ohio7
- Virginia7
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| North Carolina | 11 | 1 | 12 |
| California | 8 | 0 | 8 |
| Florida | 8 | 0 | 8 |
| Michigan | 7 | 0 | 7 |
| Ohio | 7 | 0 | 7 |
| Virginia | 7 | 0 | 7 |
| Georgia | 6 | 0 | 6 |
| Pennsylvania | 6 | 0 | 6 |
| Missouri | 5 | 0 | 5 |
| Texas | 5 | 0 | 5 |
All 33 states
Source: AR Workshop Franchising, LLC, 2024 filing, page 57
Who owns AR Workshop?
AR Workshop franchises are sold by AR Workshop Franchising, LLC. Its filing names no parent company.
From AR Workshop Franchising, LLC’s 2024 filing, page 8.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | Yes. The filing describes past or pending cases involving the franchisor, its affiliates or its executives on page 11. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: AR Workshop Franchising, LLC, 2024 filing, litigation on page 11, bankruptcy on page 11
AR Workshop filings
A franchisor files a new disclosure each year it sells franchises. The figures on this page come from AR Workshop Franchising, LLC’s 2024 filing, issued April 18, 2024; the earlier ones below are on record with the Minnesota Department of Commerce and the NASAA Electronic Filing Depository and fill in older location counts.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | April 18, 2024 | Minnesota | Costs, fees and locations, 2021–2023 |
| 2023 filing | April 7, 2023 | NASAA depository | Locations, 2020 |
| 2022 filing | March 30, 2022 | NASAA depository | Locations, 2019 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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