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Urban Air Adventure Park Franchise ProfileEntertainment Franchises > Family Entertainment Centers |
What is the Initial Investment for an Urban Air Adventure Park Franchise?
The initial investment for an Urban Air Adventure Park franchise ranges from $3,554,475 to $8,332,097. This includes a franchise fee of $100,000, as well as cash requirements between $120,000 and $240,000. Potential franchisees should be prepared for ongoing costs such as a 7% royalty fee and a 6% marketing fee, which are essential for maintaining brand presence and operational success.
What Are the Revenue Expectations for an Urban Air Adventure Park Franchise?
Franchisees can expect significant revenue potential, with an average annual revenue of approximately $4,381,993 per unit. The median revenue stands at $4,711,070, while the highest-performing units can generate up to $14,180,181 annually. This impressive revenue stream highlights the demand for family-friendly entertainment and the successful business model of Urban Air Adventure Park.
How Long Does It Take to Break Even with an Urban Air Adventure Park Franchise?
The breakeven time for an Urban Air Adventure Park franchise is approximately 18 months. This relatively quick turnaround is an attractive feature for potential franchisees, as it indicates a potential for profitability in a short period. Furthermore, the investment payback period is around 23 months, allowing franchisees to recover their initial investment within a reasonable timeframe.
What Are the Operational Costs Associated with an Urban Air Adventure Park Franchise?
Operating expenses for Urban Air Adventure Park franchises are substantial, with total annual costs averaging around $1,708,075. Key expenses include payroll ($501,886), advertising ($467,834), and occupancy costs ($316,073). Understanding these costs is crucial for franchisees to effectively manage their operations and maintain profitability in a competitive entertainment market.
Urban Air Adventure 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:
Urban Air Adventure 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 | 151 | 166 | 183 |
| Net Change YoY | 15 | 17 | |
| Franchised Units | 148 | 161 | 179 |
| Net Change YoY | 13 | 18 | |
| Corporate Units | 3 | 5 | 4 |
| Net Change YoY | 2 | -1 |
Investment Overview
The Urban Air Adventure Park franchise offers a range of initial investment options, with costs ranging from $3,554,475 to $8,332,097. The initial franchise fee is set at $100,000. Potential franchisees should be prepared for ongoing royalty fees of 7% and a marketing fee of 6%. An estimated cash requirement of $120,000 to $240,000 is necessary to cover initial expenses and operational costs.
Financial Performance
On average, Urban Air Adventure Park units generate annual revenues of approximately $4,381,993, with a median figure of $4,711,070. The lowest reported annual revenue stands at $1,167,264, while the highest reaches an impressive $14,180,181. This financial performance highlights the potential for significant earnings in the franchise model.
Breakeven and Payback
Franchisees can expect to reach breakeven within approximately 18 months of operation. The investment payback period is estimated at around 23 months, making this franchise an attractive option for those looking to recover their initial investment relatively quickly.
Franchise Growth
Urban Air has shown consistent growth over the years, increasing its number of franchised units from 148 in 2021 to 179 in 2023. In contrast, the number of corporate-owned units has fluctuated slightly, indicating a strong focus on franchise expansion and support for franchisees in the network.
Operational Insights
The average operating expenses for an Urban Air Adventure Park unit total around $2,472,679, which is approximately 56.4% of the average annual revenue. Key expenses include occupancy costs, payroll, and advertising. Understanding these operational metrics is crucial for franchisees to effectively manage their business and maximize profitability.
Brand Vision
Urban Air Adventure Park aims to provide a unique and exhilarating experience for families and individuals through a variety of attractions, including trampolines, climbing walls, and obstacle courses. The brand is committed to fostering a fun and safe environment where guests can enjoy active play, making it a popular destination for entertainment and recreation.
Frequently Asked Questions
The initial investment for an Urban Air Adventure Park franchise ranges from approximately $3,554,475 to $8,332,097. This includes the franchise fee, equipment, and other startup costs.