There are a few legitimate VR franchises out there. What do I mean by “legitimate”? It means they have gone through the process of registering their business as a franchise with the proper federal and state jurisdictions.

For example, in the USA, a franchise must register a Franchise Disclosure Document with the Federal Trade Commission (FTC) and 13 different states (known as the franchise states, including California, Maryland, Michigan, New York, Illinois, Indiana, Washington, and a few others).

There are a lot of entrepreneurial VR arcades out there with a “franchise” tab on their website. Most of them have one location. There are also many VR attraction and software vendors who use the word “franchise” in their marketing to mean “a turnkey business”.

The FTC has three basic qualifications for a business to be considered a franchise. They’re called Duck Rules. “If it looks like a duck, walks like a duck, and quacks like a duck, it’s a duck.” If the seller is behaving like a franchisor, they’re selling a franchise. All kinds of businesses can be considered franchises.

1. Trademark License. The business involves the distribution of goods or services associated with the licensor’s trademark or trade name;
2. Payment of a Fee. The licensor requires payment by the licensee for the right to operate the licensee’s business; and,
3. Control or Assistance. The licensor exercises significant control over, or provides significant assistance in, the licensee’s method of operation.

If the company you’re considering working with calls their business a franchise, and it’s not, run away. It shows a lack of business sophistication and risk tolerance that will likely lead to their demise.

With that disclaimer, here are the major VR arcade franchises you might want to consider.