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FDD Talk: Big Air Trampoline Park Franchise Review (Financial Performance Analysis, Costs, Fees, and More)

Last updated on November 14, 2019 by Franchise Chatter Leave a Comment
in FDD Talk: Children's Franchises, Franchise Earnings, Trampoline Park Franchise



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In this FDD Talk 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 2018 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Big Air Trampoline Park franchise, based on Items 5 and 6 of the company’s 2018 FDD
  • Section IV – Number of franchised and company-owned Big Air Trampoline Park outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD
  • Section V – Presentation and analysis of Big Air Trampoline Park’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:
  • 2017 actual gross revenue for the two affiliate-owned Big Air Trampoline Parks that were in operation during the entire 2017 calendar year
  • 2017 actual gross revenue (general admission, events, big eats, and retail sales), expenses (operations, utilities, marketing, rent, payroll, retail supplies, and royalties), and net profit for the franchised Big Air Trampoline Park in Spartanburg, South Carolina that was in operation during the entire 2017 calendar year

Section I – Background Information

16 Things You Need to Know About the Big Air Trampoline Park Franchise

Accelerates Growth With Leadership Team Expansion

1.  At the end of March 2018, Big Air Trampoline Park announced two senior leadership appointments in a move to continue and further accelerate the brand’s growth. Tyler Neill joined the corporate team as director of marketing strategy, while Erin Davis was appointed as director of park operations, bolstering the support structures of the burgeoning system.


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2.  Kevin Odekirk, president of Big Air, said, “The Big Air system is experiencing spectacular growth, and these moves allow us to continue to lead the industry, support our existing units, and provide the kind of one-on-one, dedicated assistance that our franchise family has come to expect. This commitment to support is what sets us apart.”

3.  Neill brings over six years of experience with Big Air Trampoline Park to his new role. Throughout his tenure at Big Air, Neill has worked in numerous roles within the marketing function, most recently as marketing manager for Big Air’s high-performing corporate units in Orange County, California. In that role, he led consistent sales growth that resulted in industry-leading per-unit revenue.

4.  In his new role, Neill will continue his focus on data-driven marketing to drive growth and shape product/experience development. Support initiatives include a marketing automation system, cloud-based digital signage solution, and social media support program, all fully available to Big Air franchisees.

5.  Davis is in her sixth year at Big Air and most recently served as general manager of Big Air Buena Park. In that role, Davis developed systems and standards that increased profits substantially, with a primary focus on minimizing product and labor costs.

6.  In her new role, Davis will oversee and further strengthen Big Air University, Big Air’s training program for incoming franchisees. In addition, Davis will utilize her strong park operations experience to provide ongoing support to all Big Air operators through several means, including one-on-one sessions and system-wide, topical training calls.


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New Locations

7.  Big Air Trampoline Park has continued to grow its presence across the United States and had several new openings in 2018, including a location in Greenville, South Carolina and Corona, California. The Greenville Big Air Trampoline Park was opened over the summer while the Corona location was opened in the fall.

8.  At the end of March 2018, Big Air Trampoline Park announced that it was opening its second South Carolina location in Greenville. This location is owned and operated by franchisee Dustin Pelletier; this is the second Big Air Trampoline Park for Pelletier.

9.  Kevin Odekirk, president of Big Air, said, “Big Air is a brand that is growing rapidly all around the U.S., but it’s even more exciting to see existing members of our franchise family choose to open second, third and even fourth units. Nothing is more gratifying than to see that kind of validation of both our brand and its extensive support structures. Results really do speak for themselves.”

10.  According to the press release, Big Air Greenville is the company’s biggest park to date, and features classic Big Air experiences, brand-new technologies, and an all-new climbing and ropes area.


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11.  Pelletier added, “I’m absolutely thrilled to introduce Big Air to the Greenville community. This state-of-the-art facility will be among the largest in the nation and will include tons of unique activities for kids of all ages, including experiences that connect trampolines and technology like never before. There’s nothing else like this in Greenville, and we can’t wait to serve our community through active, family fun that is safe and memorable.”

12.  The opening of Big Air Corona was announced in early August and is the 12th and biggest location in California so far. The Big Air Corona location is owned and operated by Vicki Cassidy.

13.  Odekirk said, “We are thrilled to introduce our brand of family entertainment to the people of the Inland Empire. No other trampoline park does what we do in terms of attractions, food, parties and just plain fun. The OC already knows how different and special Big Air really is, and we are so excited to share that with the IE.”

Company History

14.  Big Air Trampoline Park was founded in 2012 by Greg Briggs in Laguna Hills, California. Prior to opening the first Big Air Trampoline Park, Briggs served as the vice president of Wild Rivers Waterpark in Irvine, California. Briggs was also the vice president of the World Waterpark Association (WWA), where he was responsible for developing operating policy and managing public relations. In 1998, Greg was inducted into the World Waterpark Association Hall of Fame for his contributions to the industry.

15.  Briggs and his team were initially interested in building and acquiring waterparks in the Western United States. One of the waterparks that the group bought had extra indoor space and they wanted to find a way to use the space to generate revenue year-round. Briggs and his business partners decided on building an indoor trampoline park and named it SkyTown. This first trampoline park served as the inspiration for Big Air Trampoline Park, which is now franchising across the United States.

Entrepreneur’s Franchise 500

16.  Big Air Trampoline Park did not rank on Entrepreneur’s 2018 Franchise 500 list.

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 2018 FDD.

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

  • Please click here for detailed information on Big Air Trampoline Park’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

  • Outlets at the Start of the Year:  0
  • Outlets at the End of the Year:  0
  • Net Change:  0

2016

  • Outlets at the Start of the Year:  0
  • Outlets at the End of the Year:  1
  • Net Change:  +1

2017

  • Outlets at the Start of the Year:  1
  • Outlets at the End of the Year:  2
  • Net Change:  +1

Company-Owned

2015

  • Outlets at the Start of the Year:  2
  • Outlets at the End of the Year:  3
  • Net Change:  +1

2016

  • Outlets at the Start of the Year:  3
  • Outlets at the End of the Year:  3
  • Net Change:  0

2017

  • Outlets at the Start of the Year:  3
  • Outlets at the End of the Year:  2
  • Net Change:  -1

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

  • One of the franchisor’s Affiliates, BigAir-LH, operates one business similar to the Big Air Trampoline Business you will operate. BigAir-LH was initially formed in the State of California on October 1, 2012 and has operated a Big Air Trampoline Business in Laguna Hills, California since March 2013.
  • Another Affiliate, BigAir-BP, operates one business similar to the Big Air Trampoline Business you will operate. BigAir-BP was initially formed in the State of California on April 18, 2014, and has operated a Big Air Trampoline Business in Buena Park, California since April 2015.
  • Both BigAir-LH and BigAir-BP had Big Air Trampoline Businesses open during the entire Reporting Period.
  • The table below summarizes the financial performance of the businesses operated by BigAir-LH and BigAir-BP during the period between January 1, 2017 and December 31, 2017 (“Reporting Period”).
  • Specifically, the figures in the table below represent Annual Gross Revenue experienced by the franchisor’s Affiliate operations in Laguna Hills, California and Buena Park, California during a 12-month operating period (“Operating Period”) within the Reporting Period.

Part 1 – Affiliate-Owned Locations – Financial Performance (January 1, 2017 to December 31, 2017)

Laguna Hills



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