Entertainment brand Sandbox VR is making its way into New York City with the signing of a three-unit agreement. Partnering with the concept is an investment group with several restaurant operations.
Investment firm JLG Ventures has established itself as a more-than-capable operator in New York City with several restaurant concepts.
The next step in building its portfolio was diving into entertainment, and it found a partner in the virtual reality brand Sandbox VR. The group signed a deal to open three New York locations, with the first expected to open in Manhattan this fall.
JLG Ventures, helmed by president Carolyne Chan, also partially owns a pair of bar concepts in Double Chicken Please and Sinsa, as well as the restaurant Raku and bakery brand Patisserie Fouet, all in New York. The latest addition, Chan said, had been on the firm’s radar for a few years.
“We had been focused on the location-based entertainment industry and were particularly interested in virtual reality,” Chan said. “We found Sandbox VR and saw that it had a truly immersive experience, and there’s nothing quite like it.”
Founded in 2016, Sandbox VR has been franchising since 2019 and opened the United States to opportunities last year. Based in San Francisco, Sandbox VR has 57 locations globally, with 37 company-owned and 18 franchised. The U.S. is home to 35 of the company-owned units and three franchised sites.
“We took our time to consider and understand Sandbox VR’s model, vision and support for their franchisees,” Chan said. “In all of our encounters and dealings with them, their team has been exceptional. They have a deep understanding of immersive technology and can deliver high quality experiences, which made us comfortable with moving forward.”
Chan said the brand is regularly innovating its game offerings, and effectively blends technology and social interactions.
“It’s something that can engage people who’re new to VR, as well as those who are obsessed with it and want to play games with different groups,” Chan said. “This is our first time franchising, but we’ve seen how successful other Sandbox VR franchisees have been, and we’ve been in touch with a few of them.”
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Lee Hebditch, Sandbox VR ’s director of global franchise operations, noted the deal’s significance, with New York representing a key market as a global hub for entertainment and innovation. By developing there, Hebditch said the brand can attract an audience to help cement its global influence.
“We’ve built a strong foundation and we have a highly competitive franchise offer,” Hebditch said. “We have quite the powerful fly wheel, where strong demand leads to more locations, and that gives way to more revenue. It allows us to put in new experiences for the customers, and that keeps our brand fresh, capturing more attention. That cycle will fuel our expansion.”
Per the brand’s franchise disclosure document, the initial investment to open a Sandbox VR ranges from $250,719 to $1.87 million.
Hebditch added the brand is in good hands with JLG Ventures, as the Sandbox VR team is on the lookout for franchisees with industry expertise and a shared vision for success.
“We’re always looking to partner with those who bring strategic value,” Hebditch said. “The team at JLG stood out because they understand what it takes to build, scale and innovate brands like ours. They have a great track record with their other concepts. It’s shown us they’re not just investors, they’re partners. They recognize the importance of brand identity, customer experience and operational excellence.”
The New York deal is part of Sandbox VR’s plan to target most major metro areas in the U.S.
In those regions, Hebditch said the brand is focused on developing with multi-unit agreements, though it is open to single-unit deals in smaller markets. Finding partners for those deals includes recruiting new and existing franchisees.
“We like to grow with our strong owners and give them the opportunity to expand their territories outward,” Hebditch said. “We look for those with strong financials, but more importantly, we seek experience in retail, hospitality or entertainment. Overall, we want a franchisee who shares our passion for immersive entertainment.”