FDD Talk 2016: The Big Air Trampoline Park Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

In this FDD Talk 2016 post, you’ll learn the following:

• Section I – Background information on the Big Air Trampoline Park franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Big Air Trampoline Park franchise, based on Item 7 of the company’s 2016 FDD

• Section III – Presentation and analysis of Big Air Trampoline Park’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:

• 2015 actual gross revenue; operations/supplies/food service; payroll; marketing; utilities; rent; miscellaneous operating expenses; general, administrative, and interest; and net operating income for the one affiliate-owned Big Air Trampoline Park in Laguna Hills, California that was open during the entire 2015 calendar year

Section I – Background Information

Trampoline parks have been growing rapidly in popularity, and Big Air is capitalizing on that momentum. Founded in 2012 and based in southern California, Big Air is definitely a new kid on the block in trampoline park franchising, but is not a stranger to business success.

Big Air founder Greg Briggs successfully led Orange County’s Wild Rivers Waterpark for more than 25 years. One water park his company acquired had some significant indoor space, and the company wanted to leverage it into a year-round revenue stream. It installed an indoor trampoline park it called SkyTown.

Based on its success, the team built the first Big Air location in Laguna Hills, which was enough to make the company shift its focus to indoor trampoline parks.

With four company-owned locations in California and its first franchised location set to open soon in South Carolina, here’s how Big Air keeps things bouncing along in the family fun segment:

Innovative Attractions

The main attraction at Big Air is of course the trampolines, which typically include a primary trampoline court, a foam pit, a dodgeball area, and a basketball dunk area.

What Big Air throws into the mix are some exciting side attractions as well – a climbing wall positioned over a foam pit, a mechanical bull, and its unique Battlebeam: a hand-to-hand combat challenge that is essentially two people going at each other with soft battering rams on top of a balance beam to try and knock each other off into a pit of foam blocks.

A Noble Mission

You have to love any company with a mission like this: “To craft a high-energy, adventurous, and safe entertainment experience for families and friends of all ages, combining operational excellence, consistent innovation, and a tireless focus on the customer.”

Multiple Revenue Streams

It’s one business, but with multiple revenue streams: general admission (hour-long jump sessions that can be extended into more hours at half-price), birthday parties, and group sessions. Of course each location also offers concessions and branded apparel.

Everyone Deserves a Bounce

The chain has a Big Care program where it nominates families to come in and bounce without having to pay the hefty price tag they couldn’t otherwise afford.

Big Air has also rolled out a monthly membership plan unique among trampoline park chains that makes more bouncing affordable for families. For $19/month you get 2-hour daily jump sessions Monday through Thursday. At $39/month you can get 2-hour jump sessions any day of the week.

A Great Form of Exercise

Big Air Trampoline Park is a great combination of physical activity that gets people in shape while also being a heck of a lot more fun than your standard workout routine at a gym. This kind of combination of fitness and fun is one of the main drivers of the explosion in trampoline park popularity.

Section II – Estimated Costs

• Please click here for detailed estimates of Big Air Trampoline Park franchise costs, based on Item 7 of the company’s 2016 FDD.

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis