How Much Does it Cost to Make a Trampoline Park Business
Trampolines are fun and they are very popular. Not only does working out on a trampoline have health benefits, it is a good financial investment. Trampoline parks are a great way to earn a living.
How much does it cost to make a trampoline park business? To become a trampoline park magnet, you are going to need some money to make money. The rough estimates for start up costs can range in the neighborhood of about $900,000 to $1,500,000 depending on the route you take.
Find out all you can about owning your own trampoline park by continuing to read our article. It has the costs and other information you need to make sure you get off on the right foot.
Building a Trampoline Park Cost 101
Detailed Trampoline Park Cost
We can only give you one example of the detailed costs involved. Figures can and will change depending on how you structure your park. Here are a few figures:
Franchise fee- $50,000 to 60,000.
Lease and deposits- $21,000 to 50,000.
Building improvements- $450,000 to 600,000.
Signage- $30,000 to 33,000.
Furniture- $23,000 to 30,000.
Equipment & supplies- $123,000 to 124,000.
Licenses, utilities, etc.- $3,000 to 6,000.
Inventory- $25,000.
Professional fees- $4,000 to 12,000.
Insurance deposit- $15,000.
Pre-opening salaries, etc.- $28,000 to 33,000.
3 month operating costs- $40,000 to 80,000.
Advertising- $25,000+.
Indoor Trampoline Park Franchise Cost
Just the franchise fee alone will run you about $50,000 to 60,000 a year, depending on the company you decide to buy a franchise from. This figure represents the fee only and does not include the possible 6% gross revenue fee for licensing.
This all sounds high but you may save on other business costs, like advertising, staff training and so on.
Trampoline Park Insurance Cost
To get an actual and exact figure you would have to fill out an application form with the details about the park. Finding an insurance company that will provide general liability for your trampoline park may be much more difficult.
In a basic form, the insurance policy you need is in the neighbor of $1,000,000 and must be written by an insurance company with an AM Best minimum rating of A-. Don’t forget to add in Workers’ Compensation charges, private liability insurance costs and more to get the total cost of your insurance.
Cost of Trampoline Park Equipment
A lot of your cost will depend on the size of your trampoline park. An average sized one runs about 30,000 square feet. With this in mind, your trampoline equipment costs should be in the low 6 figures, or around $100,000 to 120,000.
Of course, if you want accessories like basket ball hoops, etc., then add in about another $5,000 to $10,000 to that figure.
Trampoline Park Cost Per Person
Normally, trampoline park operators charge per timed session. Depending on your market and target user, you can usually charge about $12 to 15 per hour. Of course, you can add deals, coupons, etc., to cut that cost to draw in more users.
If you want to go by the half hour, just cut those numbers in half or 3/4 depending on your mood and so on. This is one area where you have complete freedom to design the charges.
How Much Can You Charge?
The business rule of thumb is, you can charge as much as the market will bear. But it is a good idea to check out your competitors to see how much they are charging and how long their sessions are.
Those figures will give you a good idea in how much you should be charging. Just keep in mind, you can’t go to high or people will not come and play.
How Much Does it Cost to Rent Out a Trampoline Park
Again, you can set your rental fees according to how long you want their sessions to last. Some trampoline parks charge $199 for a two hour session for 10 people or less. Some charge groups of 20, $330 per session.
To rent out the whole park for a given amount of time, you would have to figure in lost revenue from regular users, costs and concession prices. This is also like setting your individual prices, you have complete freedom to charge what you can get or less.
Where to Find a Trampoline Park Business for Sale
Finding a trampoline park for sale is probably a better financial move as you do not have so many costs upfront to pay for. Since many trampoline parks are part of a franchise network, your best way to find one for sale is contact the company headquarters.
Or you can do an internet search and this link will help you find available trampoline parks in the US and around the world. Then you may check with commercial real estate companies to see if they are listing any trampoline parks.
Trampoline Park Business Plan Template Download Links
Before you start spending money on trampoline equipment and leases, you need to develop a good business plan. Having a good well thought out plan will save you time and money. It will also help build confidence in the business leaders you want involved in your company.
Here is one link to a business plan you may find helpful. Here is one for sale at Amazon. This link goes to a detailed one filled with the information you need to consider. For other templates and links you can just do a simple internet search for the right plan that fits your business model.
What Type of Business is a Trampoline Park
In its basic form, a trampoline park could be categorized as a recreational business. But with the ongoing expansion some parks do to include other entertainment sources. The trampoline park could easily be classified as a family entertainment center.
In any case a trampoline park is seen as a small business subject to state and federal licensing and permit regulations. Each state may have its own classification and you should check with your local office to see where you lie.
How Much is a Trampoline Park Franchise
The amount of money you pay for a franchise in your area will vary. Each parent company has its own list of what is or isn’t included in the cost of your franchise fee. While the annual fee may be $50,000 plus 6%, the initial franchise fee may run you a lot higher.
To get your own franchise in your city, you may be looking at paying between $1,000,000 and $3,000,000. But this fee includes equipment. training and other franchise offerings.
Trampoline Park Franchise Opportunities
In America alone there are over 500 trampoline parks and worldwide there is another 100. While the number may seem small, that not only provides good opportunities to enter the trampoline park business; it also allows for expansion into smaller cities where one or none exist already.
There quite a few parent trampoline companies offering franchise opportunities right now. It is still a growing business and clicking this link will bring you to the International Association of trampoline Parks. There you should find all the trampoline companies and franchise opportunities that are available.
Altitude Trampoline Park Franchise
Altitude trampoline parks is a very aggressive organization to work with. They have roughly 115 locations in operation now or under construction or preparing to be built. They are always looking for more park owners.
To get started you need to fill out a simple contact form, and submit it. Their executive team will go over the information and get back to you. Their facilities are quite modern and you should get lots of support while you are operating their franchise.
Adrenaline Trampoline Park Franchise
Currently this company has 5 trampoline parks located in the eastern side of the United States. The company began in 2018 and has not made any aggressive plans to expand quickly over the short term.
A look at this link, House of air Adrenaline, shows a $60,000 franchise fee with a high 6 to low 7 figure total investment. You can use their contact page to get more information.
Urban Air Trampoline Park Franchise
This company has expanded beyond offering just trampolines to play on. Their trampoline parks encompass a wide variety of activities that are fun for the whole family.
Since their inception in 2011, they have franchised over 46 trampoline parks in the nation. You can get full details by clicking on this link. They placed #2 on the Franchise Chatter’s top 5 trampoline park list.
How to Start a Trampoline Park Business
There are about 7 steps you need to take to open your own trampoline park business. Each step does not happen over night and may take a little time to complete each individual one:
Create a business plan- cover your costs, profit and loss schedule and more.
Create a legal entity- an LLC will protect your personal assets.
Register for taxes- you will need a tax identification number for both federal and local governments.
Open a business bank account- you need to keep accurate records here.
Set up your business accounting office- agains, good and accurate records are needed.
Obtain all permits and licenses you will need.
Get business insurance- also check to see what other coverage you will need including Worker’s Comp.
Define your business- a strong moral ethic helps here.
Create a web site- this helps you get known.
Indoor Trampoline Park Routine
The word routine is difficult to define here as it can apply to several areas of your trampoline park’s operation. But establishing good open hours is the key to having a good routine for your park.
People need to know when you are going to open and they need to know that you are going to be dependable. That means opening up the park when you say you will be open. You cannot have a flexible schedule unless you advertise that flexibility.
Pick good hours and stick to them.
Target Market
Your core market may be young children between the ages of about 6 and 12. This group will have the most fun doing the basics of trampoline routines. But that doesn’t mean you cannot target other age groups.
You can be creative and create classes for overweight adults, leagues for the competitive minded and so on. The more age groups you draw in the more money you will make. Plus, the more interesting your programs for those age groups, the more people will come to your trampoline park.
How Many Employees
The number of employees you have will grow when your business grows. When you start out, you can go with a skeleton crew to cover most of the activities and concessions you offer.
You can always add more employees as your park becomes more popular. It is said that a popular park will have about 35 to 40 employees.
Music Licensing
You can’t use other people’s music without paying for it. As a business you will need to pay for the music you pipe in over your sound system. These licensing fees can run you a pretty penny. But again it will depend on who you are dealing business with.
As an estimate, you are looking to pay about $4,000 to 5,000 for your music license. This is a rough estimate as it can be incorporated in with your other professional fees. You should talk to a good lawyer experienced in licensing music.
Certificate of Occupancy
The certificate of occupancy usually comes from the fire department. Before they issue this certificate, the fire inspector will inspect every part of your facility. If everything meets their code, they will issue the certificate.
If the inspector thinks some alterations, additions, or even subtractions to the facilities are warranted, they will make a list and give you time to comply with their recommendations.
When those are met, you should get your certificate of occupancy.
Ongoing Expenses
Utilities, insurance premiums and supplies will be your biggest ongoing expenses. A lot of your start up costs are one time only fees and do not take on a month to month identity.
Electric, water and even concessions will always be bills that you will pay throughout your years of operation. You should be make a plan to be prepared for these type of expenses that you will never get away from.
Potential Profit Estimate
Your potential profit potential will depend on your location. One trampoline park owner in New Jersey predicted a potential profit margin of 25%. This figure was reached after paying about 25% in labor costs, 6% in insurance premiums, and 25% in maintenance and ongoing costs.
A trampoline park in California experiences about $2,000,000 in gross sales and the owner walked away with about a 39% profit margin or $780,000. All in one year. Costs are high but so are the profit margins.
Some Final Comments
Starting your own trampoline park is a very detailed oriented business. You have to know your stuff and you certainly need to know your state and federal regulations. If you serve food, you will have even more regulations to comply with.
Draw up a good business plan first so that you know all the risks and do a little research before you get started. That way you will have a better chance of success.
