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Franchise Costs: Detailed Estimates of Sky Zone Indoor Trampoline Parks Franchise Costs (2016 FDD)

by Franchise Chatter on August 21, 2014

in Child-Related Franchises, Franchise Costs



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Sky Zone Indoor Trampoline Park by nymetroparents.com

This post was updated on October 17, 2016 to reflect information from Sky Zone Indoor Trampoline Parks’ 2016 FDD (Item 7).

Detailed Estimates of Sky Zone Indoor Trampoline Parks Franchise Costs Based on Item 7 (Estimated Initial Investment) of Sky Zone’s 2016 Franchise Disclosure Document

15,000 to 19,999 Square Feet

1.  Initial Franchise Fee:  $60,000

2.  Lease and Security Deposits:  $10,000 to $25,000

  • The ideal size of your Park for two or more Playing Fields should range between 15,000 and 40,000 square feet.
  • In most cases, the landlord will require a security and/or rental deposit. Usually, the landlord will require you to pay the equivalent of at least one month’s rent.
  • Generally, your rent should be between $3.50 and $24.00 per square foot (in a triple net lease) and in some cases more. If you lease retail space, the rent will be considerably higher per square foot.
  • This item represents one month’s rent as a security deposit and your first month’s rent.
  • The low range represents the least expensive rent for the smallest size Park and the high range is the most expensive rent for the largest size Park.
  • The initial investment assumes you will rent. If you purchase the property, your initial expenses will dramatically increase.

3.  Leasehold Improvements/Architect:  $518,500 to $912,300



  • When a site has been selected by you and approved by Sky Zone in writing, you will contract with a Sky Zone Franchise Group approved architect who will provide you with a preliminary layout and suggestions for the design of a typical Park and then a full set of design plans. You will then need the services of a local licensed architect to detail the layout into construction plans. You will pay for the local architect’s services directly.
  • This also includes the cost of a chain link fence and entrance platforms around the courts which can be installed by a local contractor.
  • The cost of construction, improvements, or building varies widely by the size of the space, the existing improvements, and local construction rates.
  • Sometimes you may receive a construction allowance from the landlord and if so, the costs may be reduced accordingly.

4.  Signage:  $30,325 to $53,584

5.  Playing Fields:  $312,221 to $474,093

  • The low range includes the cost of 2 Playing Fields (1 large court and 1 Toddler/Dodge ball court) and the high range includes the costs of 3 or more Playing Fields including installation, labor, shipping and handling, insurance, engineering, replacement parts, and tax.
  • These costs can fluctuate based on the square footage of each Playing Field and costs of steel and oil.
  • You must purchase the Playing Fields and the installation from Sky Zone or its affiliates.
  • The cost of the Playing Fields does not include the entrance platforms.

6.  Furniture/Fixtures:  $23,254 to $39,504

  • This range includes furniture, storage racks, lockers, kiosk, displays, slat wall, and line dividers. You must purchase these items from approved suppliers. This range assumes that these items being purchased are new and the costs include installation.

7.  Computer Software License and Hardware:  $51,031 to $62,995

  • Included in this range are the costs of the POS System, register, and the network. The number of computer stations and certain additional extra equipment will determine the amount of this Item.
  • The low range assumes you will finance the POS System and the high range assumes you will pay the entire cost of the POS System which will include the additional computer stations and other additional equipment.
  • You must purchase the designated POS package, and all the necessary modules that come with the program, from Sky Zone’s vendor.

8.  Equipment and Supplies:  $96,790 to $133,664

  • These amounts represent the audio visual system, TVs, clocks, concession equipment and supplies, cleaning supplies and equipment, first aid equipment, filming and photography equipment, telephone system, video surveillance camera system/security system, shoe security system, radios, and uniforms.
  • All of the costs assume these items are new and include any installation that is required.

9.  Licenses, Dues, Utility Deposits, etc.:  $3,000 to $6,000

10.  Inventory:  $22,576 to $27,142

  • These amounts represent the cost of your inventory including key tags, stickers, various merchandise, party favors and supplies, wristbands, SkySocks, merchandise, concessions, and uniforms. $18,000 to $35,000 is payable to Sky Zone.

11.  Travel Expenses/Pre-Opening Salaries:  $25,535 to $35,135

12.  Professional Fees:  $3,000 to $10,000

13.  Website Development:  $400 to $600



14.  Insurance Deposit:  $10,500 to $15,200

  • These amounts represent 30% of the annual premium for the required insurance. Many insurance companies will require you to pay the remainder in monthly payments for an additional 6 to 8 months. Typically, the annual premiums will range from $50,000 to $140,000 depending on the size of your Park.
  • For your liability insurance, you must use Sky Zone’s approved supplier of insurance.

15.  Additional Funds – 3 Months:  $40,000 to $80,000

  • This item estimates your initial startup expenses during the initial period of the operation of your Park, which Sky Zone estimates to be 3 months.
  • These expenses include rent, payroll costs, benefits, utilities, additional inventory requirements, supplies, advertising, and marketing costs after the first month the Park is open, etc., but do not include Royalty Fees and Advertising Fees and do not include an owner’s salary or draw or any expenses that are listed above.
  • The figures are estimates and you may have additional expenses to start the business.

16.  Grand Opening Advertising:  $25,000

  • You must spend a minimum of $25,000 (depending on the area where your Park is located) for grand opening advertising and sales promotions for your Park. You must spend half of the grand opening advertising amount before you open your Park and the remainder in the first month your Park is in operation.

17.  Total:  $1,232,131 to $1,960,217

  • These figures were based on the experience of Sky Zone’s affiliates operating Sky Zone Indoor Trampoline Parks since 2004, and the expenses may differ in other parts of the country.

20,000 to 24,999 Square Feet

  • The total estimated initial investment necessary to begin operation of a Sky Zone Indoor Trampoline Park of this size ranges from $1,447,375 to $2,231,027.

25,000 to 29,999 Square Feet

  • The total estimated initial investment necessary to begin operation of a Sky Zone Indoor Trampoline Park of this size ranges from $1,705,142 to $2,636,099.

30,000 to 34,999 Square Feet

  • The total estimated initial investment necessary to begin operation of a Sky Zone Indoor Trampoline Park of this size ranges from $1,950,768 to $2,968,000.


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{ 2 comments… read them below or add one }

Matthew March 10, 2017 at 10:17 pm

I am writing in regards to the sky zone franchise and who I could speak to with regards to purchasing, investing and basically everything to do with it. If you can guide me in the right direction I would greatly appreciate it. Thank you very much.

Matthew

Reply

Franchise Chatter March 10, 2017 at 10:20 pm

Hi Matthew,

You can request more information from the franchisor directly from their franchise website.

https://www.skyzone.com/franchise

Good luck!

Best regards,

Ambrosio

Reply

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