Royalty vs subscription is a choice between a fee that moves with your revenue and a fee that doesn't. A royalty takes a percentage of sales every month, so it shrinks in a slow season and grows in a strong one; a subscription is a fixed amount, so it costs relatively more in a slow month and much less in a strong one. Metaforce VR Arena uses a subscription (taxes included): $4,990 for 6 months, $7,990 for 12 or $14,990 for 24, then $799 per month, with no share of partner revenue.
We explain the basic model and a simple royalty example on franchise without royalty. This article looks at what owners ask next: how the two models behave across a real year with seasons, what the contract term means in practice, and what honestly happens when a subscription ends.
How does each model hit your cash flow in a seasonal year?
A VR arena does not earn the same amount every month. Holidays and school breaks bring peaks; in many cities summer is quieter. The question is not only "which costs less per year" but "which one is easier to pay in the worst month".
Below is a hypothetical year. Revenue figures are round illustrative numbers, not data from any arena. The royalty model assumes 6% of gross revenue plus a 2% marketing fund, 8% in total, the same illustrative rate we use on the no-royalty page. The subscription is $799 per month, the month-to-month rate after the first term.
| Quarter (hypothetical) | Revenue | Royalty + marketing, 8% | Subscription, 3 × $799 | Subscription as % of revenue |
|---|---|---|---|---|
| Q1, winter holidays | $66,000 | $5,280 | $2,397 | 3.6% |
| Q2, spring | $54,000 | $4,320 | $2,397 | 4.4% |
| Q3, summer dip | $42,000 | $3,360 | $2,397 | 5.7% |
| Q4, run-up to holidays | $78,000 | $6,240 | $2,397 | 3.1% |
| Year | $240,000 | $19,200 | $9,588 | 4.0% |
What this shows:
- The royalty is self-adjusting. In the weak quarter it is almost half of what it is in the strongest one. That is a real benefit of the royalty model and the main argument for it.
- The subscription is heavier in the dip, in relative terms. In the summer quarter it takes 5.7% of revenue, against 3.1% in the strongest quarter.
- In absolute money, the subscription is lower in every quarter of this example, because even the weak quarter is above the point where 8% equals $799 a month, which is about $10,000 of monthly revenue.
The last point has a limit. In a month where revenue falls below that crossover, say a hypothetical $8,000, an 8% royalty would be $640, less than $799. A subscription is the better deal for an arena that earns steadily; for one that has many very weak months, it is not. Be honest with yourself about which one you are planning.
What about the first months, before the arena earns?
This is where the two models differ most, and it is rarely discussed.
With a royalty, you usually pay an upfront franchise fee, and then the royalty only starts when sales start. With a Metaforce subscription there is no franchise fee; you pay a fixed price for the chosen term, for example $7,990 for 12 months, and the whole term is paid upfront, at the start. That money leaves the business before the arena earns anything, so it belongs in the launch budget, not in the monthly costs.
What that means for planning:
- Include the subscription for the first term in your launch budget, alongside venue, renovation and equipment. It is paid at the start, so the opening months are already covered.
- During the term, there is nothing more to pay us. The first months, when bookings are still building up, carry no royalty, no revenue share and no monthly fee. For an arena in ramp-up, that is often the tightest period for cash.
- When the term ends, you choose again: buy another fixed term (6, 12 or 24 months), paid upfront, or continue at $799 per month, which then joins rent and wages as a fixed cost.
The full launch budget is broken down in how much it costs to open a VR arcade.
How do you choose the contract term?
The Metaforce contract runs for the subscription term you choose, paid upfront. When it ends, you can buy another fixed term of 6, 12 or 24 months or continue month to month at $799. There are no penalties.
| Term | Price (taxes included) | Average per month | Cost over 36 months, then $799/month |
|---|---|---|---|
| 6 months | $4,990 | about $832 | $28,960 |
| 12 months | $7,990 | about $666 | $27,166 |
| 24 months | $14,990 | about $625 | $24,578 |
The 36-month column is simple arithmetic: the price of the term plus $799 for each remaining month.
How to think about it:
- A longer term lowers total cost but ties up more cash before opening.
- A shorter term keeps cash for working capital, which matters if your budget for the first months is thin.
- Month to month after the term gives flexibility, but at the highest monthly rate. Another fixed term keeps the lower average price.
There is no right answer for everyone. If your working capital is comfortable, the 24-month term is the cheapest route. If it isn't, a shorter term with more cash in reserve is usually the safer choice for a new arena.
Why doesn't Metaforce take a share of partner revenue?
Three reasons, all practical:
- We sell a product, not a share in your business. Metaforce develops its own games, rebuilds maps for each venue and supplies training and a knowledge base; with the franchise package, partners also get a website, the network CRM and a marketing kit. That is a defined package, so we price it as one.
- You run the business. Rent, staff, local sales and service are yours, and so is the result. Taking a percentage of revenue that we don't generate would mean charging you for your own work.
- It keeps us honest on content. A royalty gets paid as long as the contract lasts. A subscription gets renewed only if the product is still worth it. That is the pressure behind new maps or games every 6 months, which are included.
There is also a practical side for the operator: no royalty reports, no fee calculations on your turnover and no marketing fund contribution. What you pay us is known in advance.
What honestly happens when the subscription ends?
When the subscription ends, access to the games, the Metaforce brand, the website and the CRM stops: nothing from Metaforce stays with you. There are no penalties and no exit fee, and you can renew the subscription later. That is the trade-off of the model, and it is better to plan for it on day one than to discover it later.
What stays yours:
- The equipment. You bought it yourself, from any supplier.
- The venue, lease and renovation. They were always your contracts and your investment.
- Your team and your customer relationships.
What to plan for:
- Outstanding gift certificates. Arenas sell gift certificates (12 months in Metaforce-branded arenas). If you ever decide to stop, those are obligations to your customers that you will need to honor.
- Pre-booked events. Parties and corporate events are booked ahead. Time any decision around your booking calendar.
- Brand, website and CRM. With the franchise package, partners use the Metaforce brand, a website and the network CRM only while the subscription runs. If you ever decide to stop, plan how the arena will present itself and reach its customers without them.
Owners who don't want to commit for long can stay month to month after the first term at $799 per month; owners who plan to stay can buy another fixed term instead.
Which model fits your arena?
A subscription tends to fit if:
- you expect steady revenue above the crossover point in most months;
- you want predictable fixed costs and to keep all upside from strong months;
- you prefer a fee that doesn't need to be calculated from your sales.
A royalty tends to fit if:
- you expect long periods of very low revenue;
- you'd rather pay more in good months in exchange for paying less in bad ones.
To compare specific brands, use our VR franchise comparison, and check the VR franchise cost page for the full Metaforce price list.
Related articles
- How Much Does It Cost to Open a VR Arcade in 2026? A Line-by-Line Budget
- Are VR Arcades Profitable? What the Metaforce VR Arena Network Shows
- How Often Should a VR Arena Update Its Games? An Operator's Guide
FAQ
What is the difference between a royalty and a subscription?
A royalty is a percentage of your revenue paid to the franchisor every period. A subscription is a fixed fee for a defined package, regardless of revenue.
Is a subscription always cheaper than a royalty?
No. In a month with very low revenue, a percentage can be smaller than a fixed fee. At an illustrative 8% royalty, the crossover with $799 is about $10,000 of monthly revenue.
When do I pay the Metaforce subscription?
The chosen term (6, 12 or 24 months) is paid upfront, at the start. When it ends, you can buy another fixed term or continue month to month at $799.
Are there penalties for ending the contract?
No. When the subscription ends, access to the games, the Metaforce brand, the website and the CRM stops. You can renew the subscription later.
Do I keep my equipment if I stop the subscription?
Yes. You buy equipment yourself from any supplier, so it is yours.
Does the fee depend on my sales figures?
No. There is no revenue share, so the fee is the same whatever your turnover.
Apply now and our manager will help you pick the term that fits your launch budget.