FDD Talk 2014: Our Latest Views on Sky Zone’s Revenue Disclosures for Franchised and Affiliate-Owned Indoor Trampoline Parks

Highlights of Sky Zone’s Item 19 Financial Performance Representations (2014 FDD)

• Since the franchisor does not own any Sky Zone Indoor Trampoline Parks, the information contained in this Item 19 is based upon the financial performance of Sky Zone Indoor Trampoline Parks that are owned and operated by its Affiliates.

• The operations of the Affiliates are substantially similar to the operations that are contemplated by the franchise described in this Franchise Disclosure Document, and certain material differences in the economic or market conditions known to or reasonably ascertainable by Sky Zone are more fully described below.

• However, no two Sky Zone Indoor Trampoline Parks are exactly alike and there are differences in certain aspects of the Sky Zone Indoor Trampoline Parks as more fully described below.

• Listed in the chart below are the revenue figures and hourly jumper capacity for 3 Affiliate-owned Sky Zone Indoor Trampoline Parks and 23 franchised Sky Zone Indoor Trampoline Parks, all of which have been in operation for more than 12 months.

• In Las Vegas, Nevada, the Affiliate-owned location closed in June 2013 and the franchisee-owned location opened in July 2013.

• At the end of calendar year 2013, there were 52 franchised units in the field and only 27 of these business locations were open for 12 months or longer.

• The results of three franchisees’ Sky Zone Indoor Trampoline Parks have not been included in this Item 19 because the franchisor has agreed with the franchisees not to share their financial information.

• The information provided is not a forecast, projection, or prediction of how your franchise will perform. These figures should not be relied upon as the actual or potential revenue that you will realize. It is likely that your revenue will differ from the information in this financial performance representation.

• These statements have not been audited, and may not be based on generally accepted accounting principles.

January 1, 2013 Through December 31, 2013

Las Vegas, NV (affiliate-owned); closed in June 2013

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