Altitude Trampoline Park Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,625,000 - $2,957,500
Franchise Fee
$10,000
Min Cash Required
$200,000
Total US Locations
80
Business Summary
Altitude Trampoline Park offers franchises for recreational entertainment facilities. These Parks feature trampolines, obstacle courses, and various other recreational activities. They also offer and sell related products and services under the "Altitude Trampoline Park®" brand and trademarks, following a unique and proprietary business system.
Corporate History
Altitude Trampoline Park, operating under ATP Franchising, LLC, was formally organized in Delaware in October 2018. The company itself began offering franchises for its Parks in February 2019. However, the franchise system has a history that goes back further, as its predecessor companies had been selling franchises for Altitude Trampoline Park locations from January 2016 until December 2018. The current parent company, ATPH, acquired the entire Altitude Trampoline Park franchise system in December 2018 from these predecessors. Additionally, an affiliate, TPP Franchising LLC, began offering franchises for another recreational concept, "The Pickle Pad," in November 2023.
Financial Overview
Investment Range
$1,625,000 - $2,957,500
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$50,000
Minimum Cash Required
$200,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$1,115,000
Equipment Costs (High)
$2,100,000
Working Capital
$225,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for Altitude Trampoline Park's franchising entity, ATP Franchising, LLC, show a net loss of $1,486,857 for the year ended December 31, 2024, following a net income of $230,528 in 2023. The company also has an accumulated deficit, which grew to $6,402,675 by the end of 2024 from $4,915,818 in 2023. Despite these losses and accumulated deficit, the independent auditor has issued an unqualified opinion on the consolidated financial statements, indicating that they are presented fairly in all material respects according to accounting principles. The auditor's report mentions that management is required to evaluate whether there are conditions that raise substantial doubt about the company's ability to continue as a going concern, but the auditor's opinion itself does not include a 'going concern qualification.'
Financing Details
Altitude Trampoline Park does not offer any direct or indirect financing to prospective franchisees. This means that Altitude Trampoline Park will not provide loans, lines of credit, or other financial assistance for any part of the initial investment or ongoing operations. Additionally, Altitude Trampoline Park does not guarantee any promissory notes, mortgages, leases, or other financial obligations that a franchisee might incur from third-party lenders or landlords. Franchisees will need to secure all necessary funding independently from banks or other financial institutions.
Performance Metrics
Total US Locations
80
Franchised Units
69
Corporate Units
11
Avg Square Footage
25,000
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
8
Litigation Summary
Altitude Trampoline Park has a legal history involving both ongoing cases and several concluded matters. Currently, Altitude Trampoline Park is facing four pending lawsuits filed between November 2023 and March 2024. Three of these cases involve individuals who claim to have suffered injuries (fractured tibia, fractured ankle, fractured foot) at franchised Parks in New Jersey. These plaintiffs allege negligence, reckless conduct, gross negligence, wanton conduct, and fraud, specifically claiming that the Park's participant waiver misrepresented safety certifications. Altitude Trampoline Park denies these allegations and is vigorously defending itself, having filed crossclaims against other defendants, including equipment suppliers and franchisees. Another pending case, filed in January 2024, is an arbitration brought by a franchisee, Bedrock Property Solutions, LLC. This franchisee claims that Altitude Trampoline Park made negligent misrepresentations and fraudulently induced them to enter into the franchise agreement, citing issues with market potential, initial investment, revenue projections, and lack of support. The arbitration is currently stayed indefinitely, and Altitude Trampoline Park intends to defend its position. In terms of concluded legal matters, Altitude Trampoline Park, through its parent company, ATPH, was involved in a significant dispute with its Predecessors from May 2020 to December 2021. ATPH alleged fraudulent representations and breach of the acquisition agreement, while the Predecessors counter-sued. This was resolved through a settlement where the Predecessors' owners relinquished equity, waived promissory notes, and shared escrowed purchase funds, leading to the dismissal of all claims. Before Altitude Trampoline Park acquired the system, its Predecessors faced two other lawsuits in 2018. One involved an alleged breach of an oral agent development agreement with Jim Kamp, settled for $200,000 and dismissed in 2019. The other was a claim from a franchisee, Bump It Up, LLC, alleging breach of an exclusive territory and fraud, settled for $1,075,000 and dismissed in 2019. More recently, in January 2023, Altitude Trampoline Park reached a global settlement of $10,000 for a negligence and product liability claim filed in December 2020 by William Pruitt, who alleged injury at a franchised Park, with the case formally dismissed in March 2024.
Bankruptcy History
Altitude Trampoline Park has a bankruptcy disclosure related to one of its key executives. Aziz Hashim, who serves as the Chairman of the Board of Managers for ATPH, the parent company of Altitude Trampoline Park, was an officer of Ruby Tuesday, Inc. and its affiliates when they voluntarily filed for Chapter 11 bankruptcy reorganization on October 7, 2020. The reorganization plan was approved by the court in February 2021, and the bankruptcy case was officially closed in December 2021. This was a business bankruptcy filing by Ruby Tuesday, Inc., not a personal bankruptcy of Aziz Hashim or a direct bankruptcy of Altitude Trampoline Park itself.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Altitude Trampoline Park franchise agreement, franchisees must meet several conditions. They need to provide Altitude Franchising, LLC with written notice of their intent to renew between 540 and 180 days before their current agreement expires. The franchisee and their owners must have consistently followed the franchise agreement and all brand standards during their initial term. They will also need to maintain possession of their location and agree to remodel or expand it, add or replace equipment and other necessary assets, or secure a new approved location and develop it according to the latest brand standards for new parks. Franchisees must sign the new franchise agreement and all related documents that are current at the time of renewal, which may include different terms for the royalty and brand fund contributions. Additionally, the franchisee and their owners must sign a general release of any legal claims against Altitude Franchising, LLC and its affiliates (if state law permits). Finally, the franchisee must pay a renewal fee equal to 25% of Altitude Franchising, LLC's then-current initial franchise fee, and Altitude Franchising, LLC must be offering franchises in that geographic market area at the time the renewal notice is given.
Training & Support Program
Franchisor Assistance
Altitude Trampoline Park helps its franchisees get ready to open their businesses by providing a Management Training Program for key personnel and making the Brand Standards Manual available. Altitude Trampoline Park reviews and approves or rejects proposed locations and lease agreements. It also offers prototypical plans and reviews construction plans before approving a Park to open. For a franchisee's very first Park, Altitude Trampoline Park provides dedicated on-site support, guidance, and initial operations assistance for 4-6 days before opening and for 2 days after opening. Once a Park is open, Altitude Trampoline Park continues its support by making the Brand Standards Manual available and granting franchisees the right to use its brand names and copyrighted materials. It also administers a Brand Fund that franchisees contribute to for system-wide advertising, marketing, and public relations. Altitude Trampoline Park may also offer additional training for a fee and provides operational advice based on franchisee reports and inspections. Altitude Trampoline Park helps set pricing policies and mandates certain local advertising spending from franchisees. The company also oversees the Computer System, which includes approved hardware, software, and a point-of-sale system, although franchisees are responsible for maintenance and related fees. Altitude Trampoline Park also requires attendance at various conferences and training events, which may have associated fees.
Initial Training Hours
80
Training Location
Certified Training Park
Ongoing Support
Altitude Trampoline Park provides a variety of ongoing support services to its franchisees once their parks are up and running. Franchisees have continuous access to the Brand Standards Manual, which details all the mandatory operating procedures, specifications, and guidelines for running an Altitude Trampoline Park. This manual is periodically updated, and parts of it may be available through an online platform. For continuous learning and business improvement, Altitude Trampoline Park may require franchisees and their key personnel to attend various conferences, meetings, and training programs, including an annual convention. There is a fee associated with attending these events, for example, the annual franchisee convention has a fee of $199 per person, regardless of actual attendance. If a franchisee or their key staff need additional training, or if Altitude Trampoline Park determines a park is not meeting its standards, supplemental training can be provided. This additional training incurs a fee of $400 per day per trainer, plus any associated expenses. Furthermore, franchisees are responsible for ensuring all their employees receive appropriate training, including completing the ATP Academy certification program for safety and operational standards. Altitude Trampoline Park also offers business guidance and consultation. They advise franchisees on park operations, drawing from reports submitted by the franchisees and findings from inspections. This advice covers areas like facility appearance, customer service, quality control, and equipment maintenance. Support is typically provided via telephone or at Altitude Trampoline Park's corporate offices. Initial on-site operations support is provided for 4 to 6 days before the park's opening date and for 2 days after, at no additional cost to the franchisee. In terms of marketing and advertising, Altitude Trampoline Park administers a Brand Fund. Franchisees are required to contribute 2% of their gross sales to this fund each month. This fund is used to promote the overall "Altitude Trampoline Park" brand and system through advertising, marketing campaigns, public relations, and maintaining online presences such as websites and social media accounts. Altitude Trampoline Park has exclusive control over how these Brand Fund contributions are spent. Franchisees are also responsible for their local advertising efforts and must spend a designated amount on these activities. The combined total of the Brand Fund contribution and local advertising expenditure will not exceed 5% of a park’s gross sales. All advertising materials and online presences must comply with Altitude Trampoline Park's System Standards and obtain prior approval. Altitude Trampoline Park owns all intellectual property rights related to the franchise system's websites and online listings.
Franchise Requirements
Ideal Candidate Profile
Altitude Trampoline Park is looking for qualified individuals or business entities to become franchisees. If the franchisee is a business entity, a specific "Principal Owner" must be identified. This individual needs to be a natural person holding at least a 51% ownership and voting power in the business, and must possess the full authority to make binding decisions for the franchise. Ideal candidates should demonstrate relevant business experience, possess strong financial resources to manage the substantial initial investment (which can range from $1,625,000 to $2,957,500 for a single Altitude Trampoline Park location), and have a solid understanding of their local geographic market. The franchise also expects active involvement, requiring either the Principal Owner or an approved manager to supervise the Park's day-to-day operations on a full-time basis. For those interested in developing multiple locations, Altitude Trampoline Park requires a minimum commitment to develop 5 Parks, with an initial development fee for this commitment ranging from $91,000 to $96,000, not including the subsequent costs of developing each individual Park.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Altitude Trampoline Park territories are typically defined in one of two ways. One common method is a circular area centered around the franchise location, with a specific radius that can range from 2.5 to 7.5 miles. Alternatively, the boundaries of an Altitude Trampoline Park territory might be set using established geographical markers like political subdivisions (such as cities or counties), major streets and highways, or specific zip code boundaries.
Staffing Notes
Altitude Trampoline Park requires that the Principal Owner of the franchise either personally supervises the Park's day-to-day operations on a full-time basis, or designates an approved manager to do so. In any case, an Altitude Trampoline Park location must always have one or more persons who have successfully completed the franchisor's Management Training Program present on-site for direct supervision. All employees and personnel working at an Altitude Trampoline Park location are required to complete the ATP Academy certification program. This program ensures they receive appropriate safety training and understand essential System Standards before they begin providing services. The franchisor may also require any employees, agents, or independent contractors who will have access to confidential information to execute a non-disclosure agreement that the franchisor approves or designates.