Friendly Fire Raises $4.7 Million: Franchise Pipeline Narrows to 178 Locations

Croatian gaming café franchisor Friendly Fire has secured $4.7 million in Series A funding from Zagreb-based AYMO Ventures. The company intends to utilize this capital to support ongoing operations, enhance its technology platform, and facilitate international expansion, particularly as it targets entry into the United States market. Despite this influx of institutional capital, the company remains a micro-enterprise, with its Croatian subsidiary reporting 2025 revenue of approximately $1.17 million and a net profit of $160,000.

The company currently operates 22 locations across six countries, a figure that has remained stagnant since early 2026. Furthermore, the firm’s reported franchise pipeline has contracted, dropping from over 200 units earlier in the year to 178 locations across 11 countries. Notably, a significant 100-unit master franchise agreement signed in May 2025 for markets including the United Kingdom, Spain, Poland, and Ukraine has yet to yield any operational locations 15 months later.

The business model relies on scaling through franchise fees and royalties rather than direct capital investment in new venues, with individual store build-outs estimated to cost between $218,400 and $390,685. While the company has demonstrated an ability to operate profitably in its home market, it faces a challenging landscape for physical esports venues, marked by the recent liquidation of similar franchised chains. The primary strategic uncertainty remains whether the newly acquired funding can effectively convert the existing pipeline into active, revenue-generating locations, given the lack of growth in the company's physical footprint over the past several months.