Sky Zone Indoor Trampoline Park Franchise Costs, Fees & FDD

Year Business Began: 2004

Franchising Since: 2009

Headquarters: Provo, Utah

Estimated Number of Units: 245

Franchise Description: The franchisor is Sky Zone Franchise Group, LLC. Sky Zone Indoor Trampoline Parks feature trampoline attractions to be used for sports, fitness, and recreational activities, and other active entertainment attractions. “Attractions” mean the trampoline playing fields (including trampolines, the padding, and nets), and other recreational equipment, including but not limited to slides, ziplines, ball courts, and foam pits. “Sky Zone Indoor Trampoline Park” means any facility that is operated under the system and intellectual property.
Training Overview: The designated training for franchisees is mandatory and must be completed to the franchisor’s satisfaction after franchisees have signed the Franchise Agreement and before they are approved by the operations team to open their park. The franchisor will provide an initial training program for the operation of the park to franchisees and their management team that consists of a minimum of three managers and one additional leader. Franchisees must hire, train and a sufficient number of managers so that all shifts are supervised by at least one manager, assistant manager, or team lead during all park operating hours. The initial training program will take place at one of the franchisor’s certified Sky Zone Training Parks and will last anywhere from 7 to 21 days. The franchisor will, at its expense, also provide on-site, opening assistance, consisting of at least one person, for a minimum period of five days at the park's location when it opens. The franchisor may also provide refresher programs. These programs are not mandatory at this time, but may be in the future.

Territory Granted: The Franchise Agreement grants franchisees the right to own and operate a park at a specific location. Franchisees will receive a protected territory, except for the circumstances set forth in the FDD. The territory will be delineated at the time franchisees sign their Franchise Agreement and shall be based on zip codes or metes and bounds or other territory delineations the franchisor may utilize. Typically, but not in all cases, each protected territory granted under a Franchise Agreement will encompass a population of 150,000 people. Franchisees will not receive an exclusive territory. However, if franchisees remain in compliance with the Franchise Agreement and all other agreements entered into with the franchisor (or any of its affiliates) and except as described in the FDD, the franchisor will not own and operate, or license a third party to own and operate, a park within the protected territory while the Franchise Agreement is in effect.

Obligations and Restrictions: Franchisees (or the designated responsible person, if the franchisee is a legal entity) agree to personally manage and operate the franchise and will not, without the franchisor’s prior written consent, delegate their (or their responsible person’s) authority and responsibility with respect to management and operation. Franchisees agree that they (or their responsible person) will always faithfully, honestly and diligently perform the obligations and continuously exert best efforts to promote and enhance the franchise. Each of the owners must jointly and severally be bound by the terms of the Franchise Agreement and personally guarantee the franchisee’s (or responsible person’s) performance. Franchisees may offer only the products and services the franchisor has approved in writing. Franchisees must offer all services and products that the franchisor designates as required for franchisees.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. A successor franchise may be granted for a period of 10 years if franchisees meet the franchisor’s conditions.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee any of a franchisee’s notes, leases, or other obligations. The franchisor offers a 20% discount on the initial franchise fee for veterans and active-duty members of the United States armed forces who will hold at least a 51% ownership interest in the park.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$75,000	$75,000
Lease & Security Deposits	$0	$130,000
Leasehold Improvements/Architect	$1,000,000	$2,600,000
Signage	$20,000	$65,000
Attractions	$700,000	$1,400,000
Furniture/Fixtures	$30,000	$80,000
Computer Equipment	$60,000	$80,000
Equipment and Supplies	$125,000	$170,000
Licenses, Dues, and Utility Deposits	$5,000	$17,500
Inventory	$20,000	$75,000
Travel Expenses/Pre-Opening Salaries	$40,000	$65,000
Professional Fees	$4,000	$20,000
Insurance Premiums, Loss Fund Allocations Fee and Other Insurance for First Quarter of Operations	$24,000	$65,000
Additional Funds – 3 months	$185,000	$290,000
Grand Opening Marketing Expense	$35,000	$35,000
Technology Fees	$2,960	$2,960
Site Development Fee	$5,000	$5,000
ESTIMATED TOTAL (varies upon square footage)	$2,330,960	$5,175,460

 
Other Fees

Type of Fee	Amount
Royalty Fee	6% of gross sales.
Advertising Fee	Currently, 3% of gross sales.
Local Advertising Funding Requirement	$12,000 during first month of park operations; 4% of gross sales thereafter. Amount of shortfall (as applicable).
Technology Fee	Currently, $1,480 per month.
Transfer Fee (Franchise Agreement)	50% of the then current initial franchise fee. $2,500 for select transfers.
Transfer Fee Deposit	$2,500
Successor Fee Under the Franchise Agreement	25% of the then current initial franchise fee.
Extension Fee (Franchise Agreement)	100% of then-current initial franchise fee.
Space Plan Fee	$350 per space plan.
Relocation Expenses	Actual costs.
Call Center Program Fee	Not currently charged, but estimated to be from $1,000 to $1,400 per month.
Interest on Late Payments	Lesser of 18% annually or maximum rate permitted by applicable law.
Overdue Supplier Payments	Actual costs.
Non-Compliance Fee	$250 for each day franchisees remain out of compliance. $2,500 per violation for failure to obtain guest waivers.
Inspection and Compliance Reimbursement	The franchisor’s actual costs, including travel and living expenses.
Training and Assistance Fees	Currently, the franchisor reserves the right to charge $500 per day, plus travel and living expenses.
Annual Convention Fees	Currently, up to $1,500 per person, plus travel and living expenses.
Maintenance Costs	Actual costs for failing or refusing to correct deficiencies at the park.
Product Purchases and Installation of Attractions	Varies based on the products ordered.
Alternate Supplier Approval Costs	Reasonable costs of inspecting proposed supplier and actual costs of testing proposed products or evaluating proposed service or service provider.
Master Insurance Program Costs	Total cost of risk, currently between 2.0% and 10.0% of gross sales, but subject to recalculation every six months and could increase or decrease.
Third-Party Insurance Coverages	Actual costs.
Quality Control Programs	Actual costs.
Advertising Cooperatives & Special Promotion Fees	As required.
Audit	Understated amounts with interest. The franchisor’s costs and expenses of the audit, including professional fees, travel, meals and lodging (as applicable).
Management Fee	50% of gross sales; travel and living expenses.
Taxes	Actual costs.
Indemnification	Amount of our liabilities, fines, losses, damages, costs and expenses (including reasonable attorneys’ fees).
Costs and Attorneys’ Fees	Actual costs and expenses.
Arbitration and Proceeding Costs	Reasonable costs and expenses, including attorneys’ fees.
Liquidated Damages	See FDD.
Reimbursement for Other Obligations and Duties	Actual costs and expenses.
Late Report Fee	$100 per instance, plus $100 per day or $100 per month franchisees remain out of compliance (as applicable).

The above information has been compiled from the FDD of Sky Zone Indoor Trampoline Park. Year of FDD: 2025.
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