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FDD Talk: The Sky Zone Trampoline Park Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on March 3, 2016

in Child-Related Franchises, FDD Talk 2017: Children's Franchises, Franchise Earnings



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Sky Zone Indoor Trampoline Park by nymetroparents.com

In this FDD Talk post, you’ll learn the following:

  • Section I – Background information on the Sky Zone Trampoline Park franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Sky Zone Trampoline Park franchise, based on Item 7 of the company’s 2015 FDD
  • Section III – Presentation and analysis of Sky Zone Trampoline Park’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
  • 2014 revenue and hourly court capacity for each of the 4 affiliate-owned and 43 franchised Sky Zone Trampoline Parks, all of which have been in operation for more than 12 months

Section I – Background Information

In case you hadn’t noticed, kids all around the world love to bounce, so it’s only fitting that someone finally created a place where kids of all ages could bounce to their hearts’ content.

Sky Zone is the planet’s very first indoor trampoline park. Rick Platt is the entrepreneur who came up with the idea. His original intention in 2004 was to create an exciting new sport with professional athletes. That didn’t pan out, but he discovered that everyone wanted to come in and bounce on the special courts he’d created with interconnected trampolines.

In the first year of being open to the public, the original facility in Las Vegas hosted more than 10,000 visitors. Platt’s son Jeff opened another location in St. Louis, MO in 2006 that became profitable in just six weeks. Jeff Platt is the current CEO of the company.

The average park sees 1,000 visitors per day, and guests are advised to purchase their tickets online to guarantee admission at a particular time.

Primary marketing channels for the company include word-of-mouth and social media.

Franchising began in 2009. With more than 108 locations in the U.S., Canada, Mexico, Australia, and the Middle East, here’s how Sky Zone keeps things bouncing along in the fun and fitness segment:

Fun at Its Very Best

Where else can you bounce around and flip yourself harmlessly into a pit filled with 10,000 foam cubes? Or play a bounce-enhanced version of dodge-ball? Now imagine having a bounce-tastic birthday party in one of these places.

More Than Just Fun

Make no mistake – bouncing is pure fun, but it can also become a surprisingly serious workout that leads to fitness as well. And what better combination could there be than fun fitness?

People can burn up to 1,000 calories with an hour of jumping. Bouncing uses just about every muscle you can think of, and especially zeroes in on your abdominals in addition to your arms and legs. And it’s low-impact on your bones and joints.

It’s a cardiovascular workout that strengthens your heart and sharpens both balance and coordination. Research has shown that bouncing helps with detoxification and immune system support, lowers cholesterol and triglyceride levels, and even benefits those with autism.

A Winning Combination

The company’s mission statement says it all: “We are dedicated to providing you with the pure joy that comes with flying. We are sky lovers, thrill seekers and people who believe that jumping is freedom. We believe fitness can be fun and play can be smart. We are healthy and bursting with energy. We fly high and keep it safe. We are Sky Zone.”

Patent-Protected

Sky Zone’s all-trampoline walled playing courts are a feat of innovative engineering – so much so that the company was awarded U.S. Patent #5,624,122. That ought to keep competitors at bay at least for a while.

Section II – Estimated Costs

  • Please click here for detailed estimates of Sky Zone Trampoline Park franchise costs, based on Item 7 of the company’s 2015 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis



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