How to Finance an Insert Coin Franchise: Arcade Bar Costs
By Anthony Cornella
An Insert Coin franchise loan has to cover a business that is part arcade, part bar and part restaurant, all under one roof. That mix of games, a beverage program, a kitchen and party rooms makes the financing more involved than a single-purpose storefront.
US Professional Funding is not affiliated with, sponsored by or endorsed by Insert Coin; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, and buyers should review the current FDD and franchise agreement with a qualified franchise attorney and accountant.
Insert Coin Franchise Loan at a Glance
- Concept: a retro arcade, bar and restaurant that welcomes families during the day and becomes an adults-only bar late at night, according to the company’s website.
- Current locations: the company’s website lists two venues, in Centralia and Olympia, Washington.
- Ownership: the company describes itself as family-owned and woman- and veteran-owned.
- Initial franchise fee, royalty and brand fund: not published on the company’s own pages; buyers should confirm them in Items 5 and 6 of the current FDD.
- Estimated initial investment: not published on the company’s own pages; Item 7 of the FDD sets out the range and line items.
- Net worth and liquidity requirements: not published on the company’s own pages; ask the franchisor during the discovery process.
- SBA Franchise Directory: listed under code S8336, with a note about the Lease Addendum when real estate secures the loan.
What Is Insert Coin?
Insert Coin is a retro arcade bar and restaurant based in Washington. The founding couple spent 18 years in Washington public service before opening the business, according to the company’s website, and the name comes from the “Insert Coin” prompt on classic arcade cabinets.
The company’s two venues show how the concept scales. The Centralia location offers more than 100 arcade games across over 7,000 square feet, a 26-tap self-pour wall of craft beer and cider, and a mezzanine party room. The larger Olympia location lists more than 200 games, a pinball row, axe throwing, three themed party rooms, a 33-tap self-pour wall and an ice cream parlor.
Why lenders look closely at this concept. Insert Coin is a young, small franchise system, so a lender reviewing an Insert Coin franchise loan cannot lean on a long record of franchised units. Instead, it will focus on the strength of the buyer, the quality of the site and lease, the FDD’s cost estimates and the mix of revenue streams: game play, food, alcohol, parties and events. Liquor license timing also matters.
Insert Coin Franchise Costs
Insert Coin does not publish its franchise fee or investment range on its own website, so the FDD is the only reliable source for exact numbers. Here is where each cost appears.
Initial franchise fee. Item 5 of the FDD states the initial fee, when it is due and whether any part is refundable. If the franchisor offers multi-unit or development rights, Item 5 also covers those fees.
Real estate and build-out. An arcade bar needs open floor space for game rows, a bar with a self-pour tap wall, a commercial kitchen and, at larger sites, party rooms or axe throwing. Build-out costs depend heavily on the condition of the space, electrical capacity for rows of machines and the ventilation and plumbing needed for a kitchen and bar.
Opening costs and working capital. Opening inventory of food, beverages and redemption prizes, licenses and permits, pre-opening payroll and marketing, insurance and a cash cushion for the first months all belong in the budget.
Total investment. Item 7 of the FDD gives the estimated total initial investment and the assumptions behind it. When you review it, look for these line items:
- Initial franchise fee
- Leasehold improvements and construction
- Arcade, pinball, redemption and virtual reality games
- Bar and self-pour tap system
- Kitchen equipment, furniture and fixtures
- Point-of-sale and game card technology
- Liquor license, permits and professional fees
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
Item 6 of the FDD lists the royalty, any brand fund contribution, technology fees, transfer and renewal fees and any required refresh spending. Royalties and fund contributions are usually a percentage of gross sales, so they come off the top before rent, payroll, cost of goods and debt service. Lenders deduct every recurring fee, then test whether loan payments are still covered. In an arcade bar, cost of goods differs by revenue stream: game play carries prize and maintenance costs, while food and alcohol carry ingredient costs. Projections should show each stream separately and include a budget for rotating in new games over time.
Franchisor Requirements for New Owners
Insert Coin does not post net worth, liquid capital or experience requirements on its own website. Buyers should ask the franchisor directly and confirm any requirements in the FDD and franchise agreement.
Lenders will apply their own standards regardless. For a concept that combines hospitality, alcohol service and entertainment, they generally want to see management experience in restaurants, bars or entertainment venues, or a plan to hire an experienced general manager. Liquor compliance and party-booking experience also help. Expect to receive the FDD, visit company venues, apply and secure franchisor approval before signing.
Ways to Own an Insert Coin
Opening a new venue. With only two company locations, nearly every franchise opportunity today is a new venue. Financing covers build-out, games, bar and kitchen equipment and working capital, and lenders underwrite it from projections rather than history. Our page on family entertainment start-up financing explains how new venue loans are typically structured.
Buying an existing franchised venue. As the system grows, resales may become possible. A buyer would need the franchisor’s transfer approval under Item 17 and would finance the purchase price, goodwill and equipment based on the venue’s actual results. See our family entertainment acquisition financing options.
Insert Coin Franchise Loan Options
SBA 7(a) loans. Because Insert Coin appears on the SBA Franchise Directory, an SBA 7(a) loan can be a practical route for a qualified buyer. A single loan can cover leasehold improvements, games and equipment, the franchise fee and working capital.
SBA 504 loans. The 504 program is designed for owner-occupied real estate and long-lived fixed assets. It fits only if the buyer is purchasing or building the venue’s property, which is less typical for an arcade bar in leased retail space.
Conventional term loans. A conventional business loan may suit buyers with strong collateral and experience, or a second venue for an owner who already has operating results.
Equipment financing. Arcade cabinets, pinball machines, redemption and claw machines, virtual reality units, the self-pour tap system and kitchen equipment can be financed on their own, preserving cash for build-out. Learn more about family entertainment equipment financing and leasing.
Working capital and lines of credit. Arcade bars see busier weekends, school breaks and holidays, along with slower stretches. A line of credit can cover payroll, inventory and prize restocking through uneven weeks, as well as pre-opening expenses. See our family entertainment working capital page and our article on seasonality and cash flow at an entertainment center.
Seller financing on resales. If an existing franchised venue is sold, a seller may carry part of the price. Any seller note would be subordinate to the senior lender, and loan programs may limit how it is structured.
SBA Loans for Insert Coin Franchisees
SBA lenders rely on the SBA Franchise Directory to confirm that a brand’s franchise agreement has been reviewed for SBA eligibility. A listing does not approve any borrower, but it clears the franchise relationship for SBA review.
Insert Coin’s listing. Insert Coin is listed on the SBA Franchise Directory under code S8336. The listing includes this note: when the real estate where the franchise business is located will secure the SBA-guaranteed loan, the Lease Addendum may not be executed. In plain English, the brand’s Lease Addendum is meant for venues in leased space. If the borrower owns the property and pledges it as collateral for the SBA loan, that addendum should not be signed, since there is no third-party lease for it to modify.
Program size. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Your lender will size an SBA-backed Insert Coin franchise loan to the project and your equity. For more background, read our article on SBA loans for family entertainment centers.
How Lenders Evaluate an Insert Coin Deal
Personal credit and financial history. Lenders review credit, tax returns and a personal financial statement, and typically require a personal guarantee.
Net worth and liquidity. Lenders want to see enough cash for the equity injection plus reserves after closing. A new venue with a long build-out needs a larger cushion.
Industry and management experience. Restaurant, bar or entertainment experience matters because the concept combines all three.
Business plan and projections. Assumptions should cover game revenue per visit, food and beverage sales, party bookings, event nights, labor for a long operating day and the cost of prizes and machine maintenance. Show a ramp-up period rather than assuming full sales from opening day.
The FDD and franchise agreement. Lenders review Items 5, 6, 7, 17 and 19 along with the franchise term, renewal rights, transfer conditions and territory. Our article on how lenders read a Franchise Disclosure Document explains what they focus on.
Site and lease. Lenders look at the lease term relative to the loan, rent, renewal options, permitted use for alcohol and amusement, parking and landlord consent for the build-out. Our article on entertainment center leases and landlord consent covers what to negotiate.
Historical financials for resales. For an existing venue, expect to provide several years of profit and loss statements, tax returns and point-of-sale reports.
Games, Bar and Kitchen: The Equipment Deep Dive
Insert Coin’s venues are equipment-heavy: classic cabinets, modern titles, redemption and claw machines, pinball, virtual reality, a card-based game system, a self-pour tap wall and a full kitchen. Games and kitchen equipment hold some resale value and can serve as collateral or be financed with dedicated equipment loans. Themed decor and leasehold improvements, by contrast, have little value outside the venue. Plan for maintenance contracts, spare parts and periodic game rotation.
Multi-Unit Growth and Development Agreements
If the FDD offers development rights, review the opening schedule and what happens if a deadline is missed. Lenders usually finance the first venue on its own, then use its sales history to support a second Insert Coin franchise loan. Keep consolidated financial statements and avoid committing to a schedule that outruns your ability to raise equity.
Real-World Scenarios
A restaurant manager opening a first venue. A buyer with years of restaurant management experience signs for a new venue in leased space. An SBA 7(a) loan covers build-out, the franchise fee and working capital, and the games are financed separately.
A couple buying their building. Two buyers purchase the building their venue will occupy. Because the real estate will secure the SBA loan, their attorney confirms that the Lease Addendum is not signed, in line with the directory note.
Common Mistakes to Avoid
- Signing a lease before confirming that alcohol and amusement uses are permitted
- Underestimating electrical, ventilation and build-out costs for a game-heavy venue
- Building projections on peak weekends instead of a full year
- Leaving no budget for game rotation, prize inventory and repairs
- Overlooking the Lease Addendum note if real estate will secure the loan
For more pitfalls that owners in this industry run into, read our article on entertainment center loan mistakes.
Next Steps to Finance Your Insert Coin Franchise
Step 1: Request and study the FDD. Review Items 5, 6, 7, 10, 17 and 19 with a franchise attorney and accountant.
Step 2: Confirm franchisor requirements. Ask about net worth, liquidity, experience and territory availability.
Step 3: Estimate your budget. Use our SBA loan calculator for early payment estimates, which are for planning only and are not an offer or approval.
Step 4: Talk with a financing specialist early. Learn how lenders will size the loan and what equity they expect.
Step 5: Select a site and negotiate the lease. Confirm permitted uses, build-out allowances and the lease term.
Step 6: Assemble your loan package. Gather the FDD, lease, contractor bids, equipment quotes, projections and personal financial documents.
Step 7: Close and prepare to open. Coordinate the liquor license, game delivery, staff hiring and training before opening.
Insert Coin Franchise Loan FAQs
How much does an Insert Coin franchise cost?
Item 7 of the current FDD gives the estimated total initial investment and its line items.
What is the Insert Coin franchise fee?
The franchise fee is disclosed in Item 5 of the FDD.
What royalty does Insert Coin charge?
Ongoing royalties and any marketing fund contributions are listed in Item 6 of the FDD.
How much liquid capital do I need?
The company does not post this on its own website. Ask the franchisor, and expect lenders to require cash for the equity injection plus reserves.
Can I get an SBA loan for an Insert Coin franchise?
Insert Coin is listed on the SBA Franchise Directory, so qualified buyers can apply for SBA-guaranteed financing.
What does the SBA directory note mean?
If the real estate where the venue operates will secure the SBA loan, the brand’s Lease Addendum may not be executed. It applies only when the borrower owns and pledges the property.
Can a first-time owner qualify?
Yes, if the franchisor approves the candidate. A first-time owner can strengthen an Insert Coin franchise loan request with restaurant, bar or entertainment experience, or an experienced general manager.
Does Insert Coin offer financing?
Check Item 10 of the FDD for any franchisor financing. Most buyers arrange their own loans, and Item 19 shows whether the FDD includes financial performance representations.
How long is the Insert Coin franchise term?
The term, renewal rights and transfer conditions appear in Item 17 of the FDD. Lenders compare the remaining term with the loan length.
Can I buy an existing Insert Coin?
Resales depend on system growth and require franchisor transfer approval.
Final Thoughts
An Insert Coin franchise blends arcade games, a bar, a kitchen and party space, so financing has to cover a wide range of assets and a long operating day. Buyers who prepare an Insert Coin franchise loan request carefully, study the FDD, secure the right site and lease, plan for the liquor license and keep healthy working capital give themselves the best chance at a smooth opening.
US Professional Funding helps franchise owners and buyers finance new venues, acquisitions, equipment and working capital. Learn more about our franchise financing solutions and our family entertainment financing.
