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Franchise Costs: Detailed Estimates of Sky Zone Indoor Trampoline Parks Franchise Costs (2017 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 July 17, 2017 to reflect information from Sky Zone Indoor Trampoline Parks’ 2017 FDD (Item 7).

Detailed Estimates of Sky Zone Indoor Trampoline Parks Franchise Costs Based on Item 7 (Estimated Initial Investment) of Sky Zone’s 2017 Franchise Disclosure Document

15,000 Square Feet

1.  Initial Franchise Fee (including Deposit):  $60,000

2.  Lease and Security Deposits:  $21,000 to $47,250

  • The ideal size of your Park for two or more Playing Fields should range between 15,000 and 30,000 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.
  • This item represents one month’s rent as a security deposit and your first month’s rent.
  • The low range in each table represents the least expensive deposit for a Park of the size described in the applicable Chart, and the high range is the most expensive deposit for a Park of that size.
  • The initial investment assumes you will rent. If you purchase the property, your initial expenses will dramatically increase.

3.  Leasehold Improvements/Architect:  $448,800 to $633,000

  • 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 $33,881

5.  Playing Fields:  $427,195 to $452,423

  • The low range includes the cost of 2 Playing Fields (1 large court and 1 Toddler/Dodge ball court) and 1 attraction, while the high range includes the costs of 3 or more Playing Fields and at least 1 attraction, 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:  $22,969 to $30,318

  • 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:  $69,088 to $71,171

  • 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:  $122,963 to $124,516

  • 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:  $25,439

  • These amounts represent the cost of your inventory including key tags, stickers, various merchandise, party favors and supplies, wristbands, SkySocks, merchandise, concessions, and uniforms. $13,849 to $14,029 is payable to Sky Zone.

11.  Travel Expenses/Pre-Opening Salaries:  $28,535 to $32,535

12.  Professional Fees:  $4,000 to $12,000

13.  Insurance Deposit:  $15,500 to $16,300

  • These amounts represent a 2-month deposit of the annual premium for the required insurance. Many insurance companies will require you to pay this amount before opening and allow you to pay the remainder in monthly payments for an additional 10 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.

14.  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.

15.  Grand Opening Advertising:  $25,000 to $30,000

  • You must spend a minimum of $25,000 to $30,000 (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.

16.  Total:  $1,343,813 to $1,654,833

  • These figures were based on the experience of Sky Zone’s affiliates operating Sky Zone Indoor Trampoline Parks since 2001, as well as certain figures/estimates Sky Zone has compiled regarding certain franchisee openings since 2004.

20,000 Square Feet

  • The total estimated initial investment necessary to begin operation of a Sky Zone Indoor Trampoline Park of this size ranges from $1,546,950 to $1,980,726.

25,000 Square Feet

  • The total estimated initial investment necessary to begin operation of a Sky Zone Indoor Trampoline Park of this size ranges from $1,742,650 to $2,346,850.

30,000 Square Feet

  • The total estimated initial investment necessary to begin operation of a Sky Zone Indoor Trampoline Park of this size ranges from $2,005,337 to $2,694,116.

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