1. Zero-Royalty Model in One Sentence
Activate Games charges no royalty, no marketing fund, no hidden fees—just a flat $299/month software license that includes 24/7 support, quarterly content drops and a white-label booking app. Operators keep 46 % EBITDA versus 29 % under traditional 7 % gross royalty brands.
2. Investment Snapshot
| Component | USD | Inclusions |
|---|---|---|
| 12-station VR arena | $156 k | Headsets, PCs, haptic floor, tracking |
| Interactive projection floor (80 m²) | $84 k | LED tiles, sensor bar, 12 titles |
| Dual motion walls (2 × 4 m) | $34 k | Aluminum frame, 0.5 mm sensors |
| Redemption & POS kiosk | $18 k | 42-prize crane, cloud POS, card reader |
| Shipping & installation | $28 k | DDP Los Angeles, 5-day on-site build |
| Total turnkey | $320 k | Financing available 80 % LTV |
Monthly payment @ 7 % APR/60 mo: $6,340 vs projected $42 k gross = coverage ratio 6.6 : 1.
3. 45-Day Gantt Chart (from lease signature to grand opening)
| Week | Task | Responsible Party | Days |
|---|---|---|---|
| 1 | Site survey, CAD, MEP drawings | Activate Games | 3 |
| 1 | Landlord fit-out approval | Client | 4 |
| 2 | Equipment production & QC | Factory | 7 |
| 3 | Ocean freight Los Angeles | Logistics | 14 |
| 4 | Customs clearance, final mile | Broker | 3 |
| 5 | On-site install & calibration | Activate Techs | 5 |
| 6 | Staff training, soft opening | Both | 3 |
| 7 | Grand opening, PR blast | Both | 1 |
Buffer days are built in; 97 % of projects open on week 7.
4. Layout Engineering: Activate Games 4,000 sq ft That Flows Like Disney
- Entry tunnel – 90-second LED video wall (free marketing)
- Zone A VR Arena – 12 stations, 360° projection dome, capacity 48 pph
- Zone B Interactive Floor – 80 m², toddler mornings, esports nights
- Zone C Motion Walls – dual-sided, 8 simultaneous players
- Redemption island – positioned between exit and gift shop
- Birthday room – sound-proof glass, parents watch from sofa
Footfall model predicts 680 visitors/day at 60 % conversion, $42 k monthly gross.
5. Financial Pro-Forma: 5-Year Cash-Flow, IRR, NPV
Assumptions: 6-day week, $0.48/min pricing, 55 % occupancy, 30 % rent, 18 % labor, 3 % utilities.
| Year | Gross | Net | Cumulative CF |
|---|---|---|---|
| 1 | $504 k | $232 k | $232 k |
| 2 | $529 k | $244 k | $476 k |
| 5 | $631 k | $291 k | $1.24 M |
IRR (after tax): 68 % | NPV (10 % discount): $891 k | Payback: 9.8 months.
Activate Games supplies a dynamic Excel model—sensitivities for rent ±20 %, ARPU ±15 %, electricity +50 %.
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