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FDD Talk 2017: What You Need to Know About the Sky Zone Indoor Trampoline Parks Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

by Franchise Chatter on July 23, 2017

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



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In this FDD Talk 2017 post, you’ll learn the following:

  • Section I – Background information on the Sky Zone Indoor Trampoline Parks franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Sky Zone Indoor Trampoline Parks franchise, based on Item 7 of the company’s 2017 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Sky Zone Indoor Trampoline Parks franchise, based on Items 5 and 6 of the company’s 2017 FDD
  • Section IV – Presentation and analysis of Sky Zone Indoor Trampoline Parks’ financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
  • 2016 average open jump revenue; event revenue; non-jumping revenue; total revenue; cost of goods sold; advertising and promotion – ad fund; advertising and promotion – all other; amortization and depreciation; current POS system expense; cleaning, building/facility supplies; credit card fees expense; insurance expense – general liability; insurance expense – other; interest expense; labor (management labor including payroll taxes); labor (non-management labor including payroll taxes); owner compensation/management fees; office expense; party expense; rent expense; replacement parts/court maintenance; royalties; utilities expense (including telephone); other expenses; total expenses; operating income; EBITDA; and EBITDA + owner’s compensation for the 85 franchisee-owned Sky Zone Indoor Trampoline Parks that were open from January 1, 2016 through December 31, 2016
  • average daily revenue generated by the 2016 franchisee-owned New Parks compared to the 2015 franchisee-owned New Parks

Section I – Background Information

13 Things You Need to Know About the Sky Zone Indoor Trampoline Parks Franchise

Ultimate Dodgeball Championship 2017

1.  Sky Zone is holding an Ultimate Dodgeball Championship tournament over the summer of 2017. According to the rules, for $99, teams can enter to compete in the tournament, which takes place on Sky Zone’s trampoline courts. If a team wins its Regional Qualifier, it will earn a chance to compete in the Championship in Chicago for $50,000 in cash prizes.

2.  The Regional Qualifiers were held from May 16 to June 11 and the Championship games will take place from August 3 to 6.



New Locations

3.  Sky Zone continues to grow as it opens new locations around the country. The newest location will open in Winston-Salem, North Carolina and will be the sixth location in the state. The other five parks are located in Greensboro, Asheville, Charlotte, Durham, and Raleigh.

4.  Another Sky Zone will open later this year at the West Ridge Mall in Topeka, Kansas. The owner of the location is L. Dee Murdock, who will simultaneously open a second location in his hometown of Joplin, Missouri.

5.  Also opening this year, is a Sky Zone in Bismarck, North Dakota, which will be the state’s second Sky Zone park.

Special Programs and Attractions

6.  To keep things fresh, Sky Zone offers several different special events and programs at each of its locations. One program that Sky Zone is currently offering is SkyCamp, which offers kids age-appropriate exercises with instructors, and other activities like Ultimate Dodgeball. Parents can drop kids off to participate in SkyCamp.

7.  Sky Zone’s newest game is SkyWars, which allows guests to engage in team battles using blasters and foam balls or darts in a variety of activities such as team elimination, capture the flag, and duck hunt.

8.  In addition to special programs, each Sky Zone location offers a different attraction other than the trampoline courts. Some Sky Zones offer The Foam Zone, a pool of huge foam squares that customers can jump into; SkyLine, a millimeters-thin raised slackline; Ultimate Dodgeball and Ultimate Volleyball; a freeclimbing bouldering wall; and several other unique attractions.

Company History

9.  Sky Zone was founded in 2004 by Rick Platt in Las Vegas, Nevada. Platt originally intended for the trampoline courts to be used as part of a new sport with professional athletes. Platt initially hired athletes for his proposed sport, which would have included rotating hoops and mid-air acrobatics.



10.  The sport failed to generate interest, but Platt opened the facility up to the public for $8 per person after local skateboarders asked to bounce on the trampoline court. The idea quickly caught on and within six months, the facility had hosted 10,000 visitors.

11.  In 2006, Jeff Platt, Rick Platt’s son, opened a second Sky Zone in St. Louis, Missouri. Jeff Platt is currently the CEO of Sky Zone and has run the company since he was 22 after Rick left to take care of Jeff’s mother Jan. Rick Platt never resumed an active role in the company, but retains a board seat.

12.  Franchising began in 2009 and today there are over 170 locations in six countries.

Entrepreneur’s Franchise 500

13.  Sky Zone has appeared on Entrepreneur’s annual Franchise 500 list since every year since it made its debut in 2011. The company’s highest rank was No. 53 in 2017, while its lowest rank was No. 453 in 2011.

Section II – Estimated Costs

  • Please click here for detailed estimates of Sky Zone Indoor Trampoline Parks franchise costs, based on Item 7 of the company’s 2017 FDD (updated).

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on Sky Zone Indoor Trampoline Parks’ initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis



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