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Altitude Trampoline Park Franchise ProfileEntertainment Franchises > Family Entertainment Centers |
What Are the Initial Investment Requirements for an Altitude Trampoline Park Franchise?
To become an Altitude Trampoline Park franchisee, you will need to prepare for an initial investment ranging from $2,225,000 to $3,258,500. This includes a franchise fee of $45,000. Additionally, you should have a cash reserve of $150,000 to $250,000 and a net worth of $500,000 to $1,000,000. Understanding these financial commitments is crucial as you explore this franchise opportunity.
What Are the Ongoing Fees Associated with an Altitude Trampoline Park Franchise?
As an Altitude Trampoline Park franchisee, you will be responsible for ongoing royalty fees of 6% of your revenue, along with a marketing fee of 2%. These fees are essential for maintaining brand presence and ensuring the success of your franchise. It's important to factor these ongoing expenses into your financial planning to ensure profitability.
What Are the Revenue Potential and Financial Performance Metrics for Franchisees?
The average annual revenue for an Altitude Trampoline Park franchise unit is approximately $2,114,975, with a median revenue of $2,023,577. The highest reported revenue per unit is $4,600,676, while the lowest is $977,370. With a breakeven time of just 12 months and an investment payback period of 24 months, the financial outlook for franchisees can be quite promising, given the right market conditions and operational efficiency.
How Many Units Are Currently Operating Under the Altitude Trampoline Park Franchise?
As of 2023, Altitude Trampoline Park operates a total of 75 units, with 66 of those being franchised and 9 corporate-owned. The franchise has seen a slight decline in the number of franchised units from 69 in 2021 to 66 in 2023, while corporate units increased from 2 in 2021 to 12 in 2022 before settling at 9 in 2023. This data can provide insights into the brand’s growth strategy and market dynamics.
Altitude Trampoline Park Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Altitude Trampoline Park Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 71 | 79 | 75 |
| Net Change YoY | +8 | -4 | |
| Franchised Units | 69 | 67 | 66 |
| Net Change YoY | -2 | -1 | |
| Corporate Units | 2 | 12 | 9 |
| Net Change YoY | +10 | -3 |
Investment Overview
The initial investment for an Altitude Trampoline Park franchise ranges from $2,225,000 to $3,258,500. This includes a franchise fee of $45,000 and requires a cash reserve of $150,000 to $250,000. Potential franchisees should also be prepared for ongoing royalty fees of 6% and a marketing fee of 2%, ensuring they can effectively promote their business while adhering to the brand's standards.
Revenue Potential
On average, an Altitude Trampoline Park unit generates annual revenue of approximately $2,114,975, with a median revenue of $2,023,577. The revenue can vary significantly, with the lowest reported annual revenue at $977,370 and the highest reaching $4,600,676. This potential for high earnings makes it an attractive option for aspiring franchise owners.
Breakeven and Payback
Franchisees can expect to break even within 12 months of opening their Altitude Trampoline Park. The investment payback period is estimated at 24 months, allowing owners to recover their initial investment relatively quickly, provided they effectively manage operations and marketing.
Operational Expenses
The average annual operating expenses for an Altitude Trampoline Park are around $1,151,496, which is approximately 54.31% of the revenue. Key expenses include real estate costs, insurance, and training materials. Understanding these costs is crucial for franchisees to maintain profitability and ensure smooth operations.
Franchise Growth
As of 2023, there are 66 franchised units of Altitude Trampoline Park, down from 69 in 2021. The number of corporate-owned units increased from 2 in 2021 to 12 in 2022, then decreased to 9 in 2023. This fluctuation indicates a dynamic growth strategy and the brand's adaptability in the market.
Financial Performance
The average gross profit margin for an Altitude Trampoline Park is a robust 89.47%, with cost of goods sold (COGS) at 10.53%. This strong financial performance highlights the brand's efficient operational model, allowing franchisees to focus on customer experience while maximizing profitability.
Frequently Asked Questions
The initial investment for an Altitude Trampoline Park franchise ranges from $2,225,000 to $3,258,500. This includes the franchise fee, equipment, leasehold improvements, and other startup costs.