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Good Games

How much does Good Games cost?

Initial Investment Range

$114,250 to $240,750

Franchise Fee

$20,000 to $35,000

The franchise offered is for the establishment and operation of a gaming center in which patrons can try out games, purchase games, participate in playing board games, card games, role-playing games, miniature games using figurines and puzzles for recreation and to compete in tournaments.

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Good Games March 30, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 22, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
3
1
6

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

The franchisor's audited financial statements reveal a significant and growing members' deficit and net losses for the past three years. This financial weakness is explicitly highlighted as a "Special Risk" in the FDD and has resulted in state regulators imposing a deferral of your initial franchise fee. This condition raises serious questions about the franchisor's ability to provide long-term support, fund system growth, or even remain solvent, which could jeopardize your investment.

Potential Mitigations

  • Your accountant must conduct a thorough review of the franchisor’s financial statements, including all footnotes and liabilities to affiliates.
  • A business advisor can help you assess if the franchisor has sufficient capital and cash flow to fulfill its support obligations.
  • Discuss with your attorney the implications of the state-mandated fee deferral and the franchisor’s overall financial health.
Citations: Item 21, FDD page 5, Exhibit D

High Franchisee Turnover

Low Risk

Explanation

Since this is a new franchise offering in the U.S. with no franchises sold to date, there is no historical data on franchisee turnover to analyze in Item 20. While high turnover is a major red flag in established systems, the complete lack of any franchisee operating history presents a different kind of risk, related to the unproven nature of the franchise system. This specific risk is addressed under the "New/Unproven Franchise System" analysis.

Potential Mitigations

  • It is crucial to have your business advisor help you understand the risks associated with being one of the first franchisees.
  • During due diligence, your attorney can help you formulate questions for the franchisor regarding their plans for supporting the initial cohort of franchisees.
  • An accountant can help you model more conservative financial projections to account for the uncertainties of a new system.
Citations: Item 20

Rapid System Growth

Low Risk

Explanation

This risk is not present as the franchisor has not yet sold any franchises in the United States, according to Item 20. Rapid system growth can strain a franchisor's ability to provide support. While not a current risk, a prospective franchisee should monitor the pace of future growth and question how the franchisor plans to scale its support systems to match expansion, should it occur quickly.

Potential Mitigations

  • A business advisor can help you evaluate the franchisor's plans for scaling its support infrastructure.
  • In discussions with the franchisor, it's wise to have your attorney clarify their commitment to maintaining support levels as the system grows.
  • Monitoring industry news and franchisee forums can provide insight into how the franchisor is managing growth once sales begin.
Citations: Item 20

New/Unproven Franchise System

High Risk

Explanation

This is the franchisor's first franchise offering in the United States, and Item 20 confirms there are no existing franchisees. You would be one of the first, if not the first, to operate under this system in the US. This presents a heightened risk as the business model, brand recognition, and support systems are unproven in a franchise context within this market. The franchisor's disclosed financial instability further elevates this risk.

Potential Mitigations

  • Your attorney should attempt to negotiate more favorable terms, such as reduced fees or enhanced protections, to compensate for the higher risk.
  • A thorough investigation of the principals' track record with their Australian operations should be conducted with your business advisor.
  • Creating conservative financial projections with the help of an accountant is essential, given the lack of historical performance data.
Citations: Items 1, 20, 21

Possible Fad Business

Medium Risk

Explanation

The business model centers on a physical gaming center for non-computer games. While this is a growing hobby, its long-term mass-market appeal and resilience to economic shifts or changing entertainment trends are less established than more traditional retail or service industries. You should carefully consider whether the concept has enduring customer demand in your specific market or if it could be perceived as a niche or trend-based business with a limited lifecycle.

Potential Mitigations

  • Conducting local market research to gauge long-term interest in tabletop gaming is a task for which a business advisor can provide assistance.
  • Evaluate the business's adaptability and the franchisor's plans for innovation with your financial advisor.
  • Formulating a business plan that accounts for potential shifts in consumer trends is a critical step to discuss with your accountant.
Citations: Item 1

Inexperienced Management

High Risk

Explanation

Item 2 indicates that while the principals have experience operating gaming centers in Australia, this is their first franchise offering in the United States. They lack a track record of managing a US-based franchise system, providing support to US franchisees, or navigating diverse US markets. This inexperience in franchising specifically could impact the quality of training, operational guidance, and strategic direction you receive, increasing your operational risks.

Potential Mitigations

  • A business advisor can help you thoroughly vet the management team’s background and their plan for navigating the US market.
  • It is important to ask the franchisor about any experienced franchise professionals or consultants they have engaged to assist them.
  • Your attorney can help you seek stronger contractual commitments regarding the level and quality of support to be provided.
Citations: Items 1, 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified. The FDD does not indicate that the franchisor is owned or controlled by a private equity firm. Private equity ownership can sometimes lead to a focus on short-term profitability over the long-term health of the system. Prospective franchisees should always understand the franchisor's ownership structure and the potential motivations of its controlling parties.

Potential Mitigations

  • A review of the franchisor's ownership structure in Item 1 with your attorney is always a prudent step.
  • A business advisor can help you research the background and reputation of the franchisor's owners.
  • Understanding the long-term vision of the ownership group is key to assessing system stability.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified. The FDD appears to disclose the key parent and affiliate companies in Australia and the US in Item 1. When a franchisor is a subsidiary, it is important to understand the relationship with and financial stability of the parent company, especially if the parent provides guarantees or essential services. Your attorney can help verify the corporate structure is fully transparent.

Potential Mitigations

  • It is wise to have your attorney review the corporate structure detailed in Item 1 to ensure all controlling entities are disclosed.
  • Your accountant should analyze any financial guarantees or support obligations from a parent company if they exist.
  • A business advisor can help you understand the practical implications of the relationships between the franchisor and its affiliates.
Citations: Not applicable

Predecessor History Issues

Low Risk

Explanation

This risk was not identified, as Item 1 of the FDD states the franchisor has no predecessor. In cases where a franchisor has acquired a business or brand from a predecessor, it is important to review the predecessor's history for any undisclosed issues, such as litigation or high franchisee turnover, which could be inherited by the new system.

Potential Mitigations

  • Your attorney should always confirm the predecessor history disclosed in Items 1, 3, and 4.
  • Independent research into a predecessor's history, with help from a business advisor, can reveal potential inherited risks.
  • Asking long-term franchisees about their experience under any previous ownership is a valuable due diligence step.
Citations: Not applicable

Pattern of Litigation

Low Risk

Explanation

This risk is not present. Item 3 of the FDD discloses no history of litigation involving the franchisor, its predecessors, or its management that would require disclosure. A pattern of litigation, particularly franchisee-initiated lawsuits alleging fraud or breach of contract, can be a significant red flag about a franchise system's health and its relationship with franchisees.

Potential Mitigations

  • A franchise attorney should always be engaged to review any disclosed litigation in Item 3.
  • Independent legal research, possibly conducted by your attorney, can sometimes uncover litigation not required to be disclosed.
  • Discussing any litigation history with current and former franchisees can provide valuable context.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
2
1
12

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
3
5
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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4

Legal & Contract Risks

Total: 16
3
3
10

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
3
0
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
3
4
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
1
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
3
7
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
6
9
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 1
1
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.