Starting your own family entertainment business is an exciting prospect that allows you to create a space where joy and fun can take center stage. Family entertainment centers can become a staple in the community while also being a profitable venture. It takes more than just dreams, though; it takes proper planning and consideration. Here are eight key steps to start a family entertainment center business. 

What is a Family Entertainment Center?

A family entertainment center (FEC) is a retail facility providing entertainment for a fee. Family entertainment centers are comprised of elements that are fun for all demographics, including arcades, bowling, miniature golf, laser tag, and golf simulators, to name a few. When proper design and elevated entertainment offerings are combined, FECs don’t just target families but a variety of individuals. 

8 Steps to Start a Family Entertainment Center Business

With a booming market that doesn’t appear to be slowing down anytime soon, starting your own family entertainment center business can be an exciting and lucrative opportunity, but it requires careful planning and execution to succeed. From deciding what type of FEC business you want to open to preparing for your grand opening, there are a few steps you will need to take when starting a family entertainment center business. 

Step 1: Choose Your FEC Model & Identify Your Market

Choosing the type of family entertainment center you want to open and researching demographics is the first step to opening your FEC. There are a variety of options to choose from, but it is crucial to analyze any gaps in the current market and identify who you want to cater to. 

Some FEC models can attract families with children year-round on weekends and school holidays. Other models appeal to young professionals as a venue for happy hour or late-night entertainment on the weekends. There is also a significant market to attract companies and organizations for their team-building initiatives and other corporate events. 

Choosing a type of FEC with high demand and low competition is optimal. For example, if there are several bowling alleys in one area but no trampoline parks, you might want to research the possible demand for trampoline parks among the community. 

Some common types of FECs to choose from are:

Narrowing in who you want your customer to be will help inform every other step of the process. You should examine the demographics of your target audience, including income levels and age distribution. You should also analyze current entertainment trends to identify what’s popular now and in the future. This will help you determine what kind of FEC facility will be most appealing to your future customers.

Simply asking your audience what they want is also a good research tactic. Talking with locals and exploring community-based social media channels might give you a better insight into what the community is lacking and how they want to spend their money on entertainment. 

Family Entertainment Center (FEC)

Step 2: Brainstorm

After you’ve identified your target market and the type of FEC you want to open, the next step is to visualize what your ideal entertainment center would be and any questions that need to be answered. 

Questions to ask yourself: 

  • What will the anchor attraction(s) be for your facility? Think of attractions like bowling, trampolines, or arcade facilities.
  • Do you want to offer food and beverages? If so, will it be casual or elevated?
  • What will be your biggest expenses?
  • How much funding will you need to actualize your vision?
  • How long do you see your FEC lasting?

The key is to find the right balance between thinking big and making sure your concept is feasible. It might be helpful to visit other FECs to brainstorm and generate some ideas of what works and what might be missing in the market.

Step 3: Find a Location

Finding the right location is another important building block to the success of your FEC. The location should be strategic, financially realistic, and meet all the necessary criteria to align with your vision.

The location of your business must:

  • Be in a safe, well-lit area
  • Be easily accessible to customers 
  • Have space for parking or for building a parking garage
  • Be expansive and open enough to contain multiple-level structure, additions, and large crowds
  • Support heavy foot traffic inside and moderate vehicle traffic outside.

A commercial real estate agent can be a valuable partner in locating the optimal location for your FEC. They can also help you understand the local laws when opening a new business including: 

  • Zoning laws
  • Construction licenses and fees
  • Insurance rates
  • Utility costs
  • State and local incentives and taxes
  • Minimum wage laws
Family Entertainment Center (FEC)

Step 4: Create a Feasibility Study & Business Plan

Laying out a feasibility study is a helpful tool for visualizing and opening your family entertainment center. A feasibility study is an analysis of the probability that the business will actually be successful, giving you an idea of if opening a FEC is worth your time and investment. 

While a feasibility study looks at the potential success of the business, a business plan provides a detailed breakdown of how the business will operate. A thoughtful business plan will reinforce your ideas and better prepare you for interacting with potential investors. The format below is a good general structure to follow:

Executive summary

This summary introduces your FEC’s mission and structure within the company.

Company analysis

A company analysis reviews your business structure and an overview of your services.

Market analysis

This analysis demonstrates your market research, as well as your analysis of competitors and target customers.

Capital expenses

List the capital costs you will require, including building costs and furniture, fixtures, and equipment (FF&E).

Operations and management

This portion covers the logistics of running your FEC, including your legal structure and company roles.

Marketing and sales

This establishes your advertising strategy. 

Once you have done your research, visualized your ideas, and selected your location, the next steps will be to bring your ambition and hard work to fruition.

Family Entertainment Center Industry Consultant

Step 5: Secure Funding

Securing funding to start a family entertainment center can be the easiest or most challenging step in the process depending on your individual financial situation. Your funding options are based on your personal assets and business plans. Make sure you have a detailed budget that includes startup costs, staff training, and overall operation and maintenance costs (which should be done in Step 4). 

You can obtain funding from investors, which will help protect your personal finances, but you will no longer be the sole owner of your FEC. If you want to retain sole ownership, you can try for small business loans while still protecting your personal bank account, depending on the loan. There are many options available, especially for women and minority business owners. Before talking to a bank, though, be sure you have a detailed business plan ready, as well as projected revenue. 

Step 6: Talk to Experts

Getting expert opinions on every aspect of your business will not only help things run more smoothly, but it will also set your FEC up for greater success. For example, a good architect combined with a consultant with operational experience will know what elements and layouts will fit your budget and space. An expert contractor can then advise you regarding acquiring permits to build your FEC with accuracy. Contractors are also linked with carpenters, electricians, plumbers, and other essential workers for your construction process.

Step 7: Build Out Your Space

Once you have your vision fleshed out and all the preliminary tasks completed, it is finally time to bring your family entertainment center to life. Hiring consultants and contractors will make this process more seamless. You will need to purchase and move in your equipment, decor, and any necessary furniture. This step will also be the point at which you begin interviewing and hiring staff to prepare for your grand opening. 

Step 8: Generate Excitement & Hold a Grand Opening

As you prepare for the opening of your family entertainment center, start generating excitement by building rapport with the community and other local business owners. Having solid relationships with local businesses will pave the way for partnership opportunities and greater involvement in the community. Be sure to start a strong marketing campaign through social media and develop a word-of-mouth referral program to bring customers into your business. 

Once your business is ready to open, hold a grand opening to demonstrate what your FEC brings to the community and raise awareness about your business. Consider having special promotions and involvement with local officials to show their support.

indoor sports park

Pros and Cons of Starting a Family Entertainment Center

Opening a family entertainment center business might sound like a fun and exciting investment, but it is pertinent to keep in mind that it is a business at the end of the day. It is important to weigh the pros and cons to make sure a FEC is the right business for you.

Pros:

  • Entertainment activities is high in demand
  • Easily scalable business model
  • Community impact

Cons: 

  • High startup costs
  • Possible seasonality lows
  • Liability and insurance issues

Before you dive headfirst into launching a FEC, it’s essential to weigh the benefits and challenges. If you love creating joyful experiences, are prepared for a hands-on business, and have the capital to invest, an FEC could be your perfect venture.

Exploring the Past and the Present of the FEC Industry

When thinking about opening your family entertainment center, it’s important to reflect on the history and successes of the industry as a whole. Today’s family entertainment center industry evolved from the convergence of standalone arcades and “pocket parks,” which were community-based go-kart and small amusement ride facilities primarily targeting families.

Modern family entertainment centers now feature a diverse array of multi-attraction entertainment concepts, evolving from a past era when a single attraction was enough. Also known as out-of-home entertainment (OHE) and location-based entertainment (LBE), FECs come in many shapes and sizes and target different customers in various ways, increasing their position as social venues with a mix of attractions and enhanced food and beverage offerings to maximize guest stay and spending. 

The FEC industry is currently experiencing something of a golden age. It has become a highly popular and mainstream form of community-based entertainment. For the first time ever, FECs are entertaining three generations of players, from grandparents to grandchildren. They are also particularly popular with millennials, which represent 21.67% of the US population or some 72 million individuals. In 2025, FECs are expected to evolve even further by incorporating more virtual and augmented reality experiences, which are suitable for many types of occasions and appeal to multiple age groups.

How to Start a Family Entertainment Center Business with Pinnacle 

Starting your own family entertainment center business is an exciting prospect, but it can also be daunting due to the numerous tasks and responsibilities that need to be managed. To help alleviate some of the pressure and complications, we developed the Pinnacle Launch Package, which offers a comprehensive and streamlined approach to reaching your goals. 

With our expertise, you can easily navigate the process from concept development to marketing strategies and even operational support. By using our launch package, you are equipping yourself with the necessary tools to create a successful FEC that will bring entertainment and joy to your customers for years to come.