How to Finance a Shift Arcade Franchise: Sim Racing Venue Costs
By Anthony Cornella
A Shift Arcade franchise loan pays for something most lenders have not financed many times before: a racing simulator venue where guests book time in motion-platform cockpits, join leagues and climb leaderboards. The concept is young and technology-heavy, so the way you document the simulators, the lease and your working capital will shape the loan as much as the brand itself.
Below we cover where the brand’s fees appear in the Franchise Disclosure Document (FDD), which loan programs fit and what its SBA directory note means.
US Professional Funding is not affiliated with, sponsored by or endorsed by Shift Arcade; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice.
Shift Arcade Franchise Loan at a Glance
- Concept: a sim racing entertainment venue with full-motion and static racing simulators, wrap-around screens, leagues and leaderboards.
- Technology: the company runs its own software platform, ShiftOS, for reservations, payments, memberships, leagues and leaderboards across locations.
- Membership: the Apex Club gives regular racers events and network-wide competition.
- Franchise system: a young system that began franchising in 2025, with a corporate venue in California and a franchised venue in Miami.
- Fees and investment: we could not verify the franchise fee, royalty or investment range from the franchisor’s own materials, so the current FDD is the source for every figure a lender will use.
- SBA status: listed on the SBA Franchise Directory (code S8284) with a note about the lease assignment when real estate secures the loan.
What Is Shift Arcade?
Shift Arcade was co-founded by Paul Baillie, who serves as CEO, and Greg Tucker, a software developer and longtime sim racer who drafted the original business plan. The first venue opened in the San Francisco Bay Area and later moved to a larger, busier entertainment location in San Ramon, California.
The pitch: real motorsport is expensive and hard to access, while a simulator lets anyone feel braking and cornering for the price of an outing. Guests can choose motion simulators that move with the car or static rigs, and the founders have said the motion units book far more often.
The software is part of the franchise. Because the company built ShiftOS in-house, every venue runs the same booking, payment and leaderboard system, and racers at one location can compete with racers at another. That network effect is central to how the brand describes its Apex Club and its leagues.
Why lenders view it the way they do. Shift Arcade is an emerging brand with a small footprint and a new asset class, so expect the lender to lean on your capital, management experience, lease and a conservative ramp-up. Our article on financing an emerging franchise explains how lenders approach younger systems.
Shift Arcade Franchise Costs
We could not verify cost figures on a franchisor web page or in an FDD we could review, so this section maps where each cost appears and what drives it. Ask the franchisor for the current FDD and build your budget from Item 7.
Initial franchise fee
Item 5 of the FDD lists the initial fee for one venue and any development fee for additional venues. Ask whether any part is refundable if you cannot find a site.
Lease and build-out
A sim racing venue needs open floor space for cockpits, sound control, upgraded electrical service, data cabling, HVAC that can handle heat from computers, a lounge, restrooms and a check-in counter. Landlord work and tenant improvement allowances can change your out-of-pocket cost a great deal.
Simulators and technology
The simulators are the core asset: motion platforms, cockpits and seats, steering wheels and pedal sets, triple-monitor or wrap-around displays, gaming computers, networking and the brand’s software. Item 7 and Item 8 should tell you which items you must buy from the franchisor or approved suppliers.
Opening costs and working capital
Plan for grand opening marketing, training wages, rent before opening, insurance and a cushion while bookings and memberships build.
Total investment
Item 7 gives the low and high estimate. Expect line items such as:
- Initial franchise fee
- Leasehold improvements and construction
- Racing simulators, motion platforms and cockpits
- Computers, displays, networking and audio
- Furniture, fixtures and décor
- Signage
- Point-of-sale and software set-up
- Security deposits and rent before opening
- Insurance, permits and professional fees
- Grand opening marketing
- Training travel and expenses
- Additional funds for the initial operating period
Lenders size a Shift Arcade franchise loan from Item 7, so make sure every line in your request ties back to it. Our page on reading the FDD for financing shows which items lenders read first.
Ongoing Fees and How They Affect Your Loan
Item 6 lists the royalty, any brand or marketing fund contribution, technology or software fees, transfer and renewal fees and any required upgrades. For a venue that runs on a proprietary booking and leaderboard platform, the software fee deserves a close look because it applies every month no matter how busy you are.
Lenders subtract each recurring fee from projected revenue before testing whether the venue can cover its payment on a Shift Arcade franchise loan. Hardware refresh is another planning item: computers, displays and motion components wear and age, and the franchise agreement may require upgrades. Build a replacement reserve into your projections so the lender sees you have planned for it.
Franchisor Requirements for New Owners
We could not verify published net worth or liquid capital minimums for Shift Arcade. The founders have said they chose franchising to bring in owners with a hands-on mindset, and the company has targeted major metro markets. Confirm any financial minimums, territory rules and owner involvement requirements with the franchisor and in the FDD.
Your lender applies its own standards for credit, equity injection and reserves no matter what the franchisor requires.
Ways to Own a Shift Arcade
A new venue. With a young system, most owners will open a new location. These loans rest on projections, the lease and your capital. Our page on family entertainment start-up financing covers this route.
Buying an existing venue. As the system grows, resales may appear. An existing venue gives a lender actual booking, party and membership data to study, which can make underwriting easier. The franchisor must approve the transfer, and Item 17 sets the conditions. See our page on entertainment business acquisition financing.
Financing Options for a Shift Arcade Franchise
SBA 7(a) loans. SBA 7(a) loans can fund the franchise fee, build-out, simulators, opening costs and working capital in one loan, subject to program rules and lender approval. The 7(a) program maximum is currently $5 million, and program rules can change.
SBA 504 loans. SBA 504 loans fit owner-occupied real estate and long-lived fixed assets. Most sim racing venues lease their space, so 504 is more likely to matter if you buy the building or a condo unit for your venue.
Conventional term loans. Borrowers with strong liquidity, other businesses or real estate may qualify for conventional business loans. With an emerging brand, expect a bank to look hard at outside collateral and global cash flow.
Equipment financing. Motion simulators, cockpits, gaming computers and displays can sometimes be financed or leased separately. Our page on entertainment equipment financing and leasing explains the options. Technology can lose resale value quickly, and any separate equipment debt counts in your primary lender’s cash flow test.
Working capital and lines of credit. Entertainment revenue swings with school calendars, weekends and holidays, so keep a cushion for slower weeks and repairs. See our page on entertainment working capital and lines of credit.
Seller financing on resales. When you buy an existing venue, the seller may carry part of the price. Seller notes are typically subordinate to the primary loan, and SBA rules may limit how they are structured.
SBA Loans for Shift Arcade Franchisees
SBA-backed loans are made by participating lenders with an SBA guarantee on part of the loan. For a franchise, the lender also confirms that the borrower controls its own business, and the SBA Franchise Directory helps with that review. A listing does not approve any borrower or guarantee a loan.
The directory listing. Shift Arcade appears on the SBA Franchise Directory under code S8284.
What the directory note means. The note says that when the real estate where the franchise is located secures the SBA-guaranteed loan, the Conditional Assignment and Assumption of Lease may not be executed. Franchisors often use this addendum to step into a franchisee’s lease if the franchise ends. In plain English, if you own the property and pledge it as collateral, that lease assignment document should not be signed, so it cannot interfere with the lender’s position on the real estate. If you lease your space, your lender will still review the lease and any franchisor addendum.
SBA application tips. Bring the FDD, a near-final lease, a simulator quote, a sources and uses statement, personal financial statements, tax returns and résumés.
How Lenders Evaluate a Shift Arcade Deal
Personal credit and financial history. Lenders review each principal owner’s credit, tax returns and debts, and significant owners usually sign personal guarantees.
Net worth and liquidity. Expect questions about the cash you will put in and what remains after closing. With a newer brand, liquidity carries extra weight.
Industry and management experience. Running an entertainment venue, restaurant or retail store helps, because staffing, guest service and events drive results.
Business plan and projections. Lenders expect projections built on simulator count, utilization by daypart, pricing, events, memberships, staffing and rent, with a slow ramp and a downside case. Our SBA loan calculator can help with early payment estimates, which are for planning only.
The FDD and franchise agreement. Lenders read the term, renewal, transfer, technology and termination provisions, and they want the franchise term to run at least as long as the loan. Review Item 3 and Item 4 of the FDD for any disclosed litigation or bankruptcy history.
Site and lease. The lease term, options, assignment rights and landlord consent all matter. Our article on entertainment center leases and landlord consent covers what to negotiate.
Simulators, Software and the Upgrade Cycle
The simulators are both the product and the largest piece of equipment collateral, so treat them like a fleet. Ask which components wear fastest, what warranty applies and who services the motion platforms.
Software is the other half. Confirm in the franchise agreement who owns your customer data, what you pay for ShiftOS and what happens to access if you sell or the agreement ends.
Multi-Unit Growth and Development Agreements
A young brand may offer development rights for a metro area. Before you commit, map each opening date against your capital. Lenders usually want the first venue performing before they fund the next. SBA program limits apply across all of a borrower’s SBA loans, so larger rollouts may shift toward conventional financing over time.
Real-World Scenarios
A restaurant operator adding entertainment. An owner of two restaurants opens a Shift Arcade nearby. The lender gives weight to the owner’s track record and cash flow, and the request combines build-out, simulators and working capital in one SBA 7(a) loan.
A first-time owner. A longtime racer without business experience hires a seasoned general manager, and the lender reviews both résumés.
An owner who buys the building. An investor buys a small commercial condo for the venue and pledges it as collateral. Because the real estate secures the loan, the SBA directory note on the lease assignment comes into play.
Common Mistakes to Avoid
- Signing a lease before confirming electrical capacity, ceiling height and sound control for simulators
- Budgeting for the simulators but not for spare parts, service and future upgrades
- Projecting peak weekend utilization for every day of the week
- Leaving out software, royalty and marketing fees when projecting cash flow
- Committing to a multi-venue schedule before the first venue proves itself
- Spending working capital on the build-out and leaving nothing for the ramp-up
For more, read the entertainment center loan mistakes that cost owners the most.
Next Steps to Finance Your Shift Arcade Franchise
Step 1: Get the current FDD. Review Items 5, 6, 7, 8, 10, 17 and 19 with a franchise attorney.
Step 2: Build your budget from Item 7. Add a contingency for construction and simulator delivery.
Step 3: Find a site. Confirm power, layout, parking and co-tenancy before you negotiate the lease.
Step 4: Talk with a financing specialist early. Confirm which Shift Arcade franchise loan structure fits and how much equity you need before you sign.
Step 5: Assemble and apply. Gather financial statements, tax returns, résumés, the lease, equipment quotes and projections, and keep the franchisor’s approval, the lease and the loan on the same timeline.
Step 6: Close and plan the opening. Schedule build-out draws, simulator installation, staff training and pre-opening marketing.
Shift Arcade Franchise Loan FAQs
How much does a Shift Arcade franchise cost?
Item 7 of the current FDD gives the estimated initial investment range. We could not verify a figure from the franchisor’s own materials, so request the FDD and confirm the total and each line item.
What is the Shift Arcade franchise fee?
Item 5 of the FDD lists the initial franchise fee and any development fee. Ask whether any part is refundable.
How much liquid capital or net worth do I need?
We could not verify published minimums. The franchisor sets its own requirements, and your lender will separately judge whether your cash and net worth fit the project.
Can I use an SBA loan for a Shift Arcade?
Possibly. Shift Arcade is listed on the SBA Franchise Directory under code S8284. Eligibility still depends on the borrower, the project, program rules and lender approval.
Can I buy an existing Shift Arcade?
As the system grows, resales may become available. The franchisor must approve the buyer, and the lender will study the venue’s financial history.
What ongoing fees does Shift Arcade charge?
Item 6 of the FDD lists the royalty, marketing contribution and technology fees. Include every one in your projections.
Can I finance the simulators separately?
Sometimes, through equipment financing or leasing, but your primary lender will count that payment in its cash flow test.
Can a first-time owner get a Shift Arcade franchise loan?
Yes, if the rest of the request is strong. First-time owners often add an experienced manager and keep extra reserves.
Does Shift Arcade offer financing?
Check Item 10 of the FDD, which describes any financing the franchisor or its affiliates offer.
How long is the franchise agreement?
Item 17 of the FDD summarizes the term, renewal and transfer rules. Lenders generally want the franchise term to extend at least as long as the loan.
Final Thoughts
A Shift Arcade franchise loan is a bet on a new kind of entertainment venue, and lenders will underwrite it as an emerging brand. Owners who build the budget from the FDD, secure a lease that fits the simulators, plan for equipment upkeep and keep a real cash cushion give themselves the best chance at approval.
US Professional Funding helps owners finance new entertainment venues, acquisitions, equipment and working capital. Learn more about our franchise financing and family entertainment business financing.
