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Earnings Claims of Top Franchises Revealed

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Franchise Costs: Detailed Estimates of Big Air Trampoline Park Franchise Costs (2016 FDD)

by Franchise Chatter on July 16, 2016

in Child-Related Franchises, Franchise Costs

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Big Air Trampoline Park

Detailed Estimates of Big Air Trampoline Park Franchise Costs Based on Item 7 (Estimated Initial Investment) of Big Air’s 2016 Franchise Disclosure Document

  • The high and low ranges in the table are based on an average Big Air Trampoline Business.

1.  Initial Franchise Fee:  $50,000

  • The Initial Franchise Fee is due when you sign the Franchise Agreement and is non-refundable once paid. Big Air will not provide direct or indirect financing.

2.  Training Fee:  $10,000

  • The Training Fee is utilized by Big Air to provide you with initial training at its headquarters.

3.  Travel and Living Expenses While Training:  $0 to $7,500

  • Big Air provides training at its location in Laguna Hills, California or at another location designated by it, and on-site training.
  • You must pay for airfare, meals, transportation costs, salaries, benefits, lodging, and incidental expenses for all initial training program attendees and for airfare, meals, transportation costs, and lodging for Big Air’s representative to provide the on-site training.
  • The low end of the range assumes you live in Laguna Hills, California and will travel home each night. The high end of the range assumes you will travel to Laguna Hills, California.

4.  Real Estate Leasing:  $75,000 to $145,000

  • If you do not own adequate space, you must lease space for your Big Air Trampoline Facility. Generally, this will require that you pay the first and the last month’s rent, plus a security deposit, at the time you sign the lease.
  • Big Air Trampoline Facilities are generally located in light industrial areas, retail areas, strip malls, freestanding buildings, and major retail malls.
  • The typical size of a Big Air Trampoline Facility is 25,000 to 35,000 square feet, but in some cases, franchisees have elected to, or been required to, take significantly more square footage.
  • These amounts are Big Air’s best estimate of the range of costs for site acquisition, fees, and security deposits.

5.  Architectural Fees and Permits:  $60,000 to $75,000

  • Big Air provides you with a basic set of design drawings for its standard layout for a Big Air Trampoline Facility. It will also work with you to develop a basic design for your Big Air Trampoline Facility.
  • You will need to hire Big Air’s designated architect or hire a local architect to prepare plans for your particular location and to create construction drawings which will be used by your local contractor to secure construction permits and to build your location.

6.  Leasehold Improvements:  $600,000 to $950,000

  • These amounts are Big Air’s best estimate of the range of costs of leasehold improvements, based on its experience constructing three Big Air Trampoline Facility locations in California, and will likely vary substantially based on local conditions.
  • They do not include the costs of any necessary site development or site engineering work, nor do they include capitalized costs of rent or other occupancy costs, over either the life of the lease or the life of your investment.
  • These estimates assume that the landlord will provide a “vanilla shell” space. In addition, these amounts do not reflect costs for the purchase of unimproved land and construction of a freestanding Big Air Trampoline Facility, which also would result in a significantly greater initial investment.
  • This estimate does not include any tenant improvement allowance you may receive from the landlord for your Big Air Trampoline Facility.

7.  Utility Deposits:  $60,000 to $80,000

8.  Furniture, Fixtures, Equipment, and Decor:  $280,000 to $450,000

  • This estimate includes the cost to purchase trampolines, concession equipment, attractions, safety equipment, and to outfit your party rooms and office. Much of this cost may be covered by an equipment lease.

9.  Exterior Sign:  $20,000 to $25,000

  • The average cost for an exterior sign ranges between $20,000 and $25,000, depending on the size of the sign and the requirements of the landlord.

10.  Computer Hardware and Software:  $20,000 to $25,000

  • The estimated initial investment includes costs related to the purchase of specified computer hardware and software for custom designated admissions system.
  • You must also provide Big Air with electronic access to certain daily information.

11.  Inventory, Supplies:  $9,000 to $15,000

  • Your initial inventory, supplies, and small safety equipment will typically include concession inventory, event supplies, paper products, birthday gift and celebration items, serving utensils, and other materials used in the Big Air Trampoline Business.
  • Big Air has the right to change the inventory, supplies, and small safety equipment requirements at any time.

12.  Start-Up Advertising and Promotions Expense:  $60,000

  • You must spend at least $60,000 on advertising, promotions, social media, and public relations efforts starting 30 days before you open your Big Air Trampoline Facility and continuing through the first 60 days your Big Air Trampoline Facility is open.
  • You should plan to spend at least $10,000 of this Start-Up Advertising and Promotions Expense on a grand opening event.

13.  Pre-Opening Costs and Expenses:  $50,000 to $75,000

  • These amounts reflect the expense, before opening, of payroll and benefit costs, startup insurance, travel, moving, hiring, conducting background checks on you and your employees, uniforms, and training materials for your hourly and salaried employees, supplies, various printed media materials, and miscellaneous set up costs for cable, internet service, and telephone.

14.  Additional Funds for First Three Months:  $200,000 to $250,000

  • This amount includes estimated operating expenses you should expect to incur during the first three months of operations, not including any revenue generated by your Big Air Trampoline Business.
  • It includes working capital, royalties, national marketing and promotions fees, POS licensing fees, technology support fees, advertising, payroll costs, deposits, fees for city, state, and local business licenses, business entity organization expenses, other prepaid expenses, accounting and professional fees, real estate leasing costs that may be payable during the first three months of operation, and other operational expenses.
  • These figures do not include any taxes or other permitting or licensing fees that you may pay.

15.  Total:  $1,494,000 to $2,262,500

  • Big Air has relied on over 28 years of experience constructing and operating activity parks and three years of experience in constructing and operating a Big Air Trampoline Business to compile these estimates.

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