Ifly Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$4,378,500 - $12,249,926
Franchise Fee
$25,000
Min Cash Required
$100,000
Total US Locations
37
Business Summary
iFLY Franchising, LLC offers franchises for iFLY Businesses, which operate vertical wind tunnels for entertainment, educational, training, competition, and other similar purposes. These businesses function as free-fall skydiving simulators, providing customers with an authentic in-flight skydiving experience. In addition to the flying experience, iFLY Businesses also sell complementary products and services such as coaching, organized competitions, video recordings, photographs, clothing, toys, and memorabilia.
Corporate History
iFLY Franchising, LLC was established in Delaware on April 6, 2009, operating under its corporate name and the iFLY brand. Its direct parent, iFLY Holdings LLC, was formed in March 2012, taking over from its predecessor, SkyGroup Investments, LLC, which was organized in March 2003 and had interests in similar businesses since August 2002. iFLY Franchising, LLC began offering its current franchise model on April 28, 2009, having previously sold wind tunnels through other arrangements.
Financial Overview
Investment Range
$4,378,500 - $12,249,926
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$25,000
Minimum Cash Required
$100,000
Royalty %
7%
Equipment Costs (Low)
$4,016,000
Equipment Costs (High)
$10,907,628
Working Capital
$175,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements of iFLY Franchising, LLC indicate that a significant portion of its revenue is generated from a limited number of related party customers, with four franchisees accounting for 82.02% of total receivables and 57.3% of revenues in 2023. Additionally, 27.9% of revenues in 2023 were recognized from related parties under common control. The company also acts as a guarantor for a term and security agreement for its parent company, iFLY Holdings, LLC, with an outstanding debt of $66,000,000 as of December 31, 2023. The auditor notes that the financial statements may not be indicative of the conditions if iFLY Franchising, LLC operated as an unaffiliated company.
Financing Details
iFLY Franchising, LLC does not offer any direct or indirect financing, nor does it guarantee notes, leases, or other obligations for its franchisees. However, its affiliate, SkyVenture, allows payment for the vertical wind tunnel equipment in two installments. The first payment is due within 10 days of signing the Purchase Agreement, with the final balance due when SkyVenture tenders the equipment. SkyVenture does not charge interest on the outstanding balance, and no note or security agreement is required unless SkyVenture has concerns about the franchisee's ability to pay, in which case it may require escrow, a letter of credit, or a bond.
Performance Metrics
Total US Locations
37
Franchised Units
6
Corporate Units
31
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
iFLY Franchising, LLC has no litigation to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
iFLY Franchising, LLC has no bankruptcy history to disclose in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
20 years
Renewal Term
10 years
Renewal Conditions
To renew, iFLY Franchising, LLC franchisees must provide written notice between 6 and 9 months before the initial term expires. They must upgrade their iFLY facility to meet current system standards and image, ensure they are not in default of any agreements, and pay all outstanding monetary obligations to iFLY Franchising, LLC and its affiliates. Franchisees must also demonstrate their right to remain in possession of their location or secure approval for a new site. They are required to reimburse iFLY Franchising, LLC for reasonable renewal expenses, including legal and accounting fees, and sign a general release of claims. Finally, franchisees must comply with iFLY Franchising, LLC's current qualification and training requirements and sign the then-current form of franchise agreement, which may have different terms, though royalty and advertising percentages will remain at the level in effect at the time of renewal.
Training & Support Program
Franchisor Assistance
iFLY Franchising, LLC provides extensive support both before and after an iFLY Business opens. Pre-opening assistance includes facilitating the purchase of the vertical wind tunnel from its affiliate, SkyVenture, and approving the franchisee's location. iFLY Franchising, LLC provides essential technical information, building design specifications, and up to 15 days of on-site commissioning services for the wind tunnel (with travel expenses paid by the franchisee). They also identify approved suppliers, license the Control System Software and the Information Collection and Retrieval System (ICRS) software, and provide initial training for up to seven flight instructor trainees, with optional management training available for a fee. Once the iFLY Business is operational, iFLY Franchising, LLC continues to support franchisees by allowing use of its System and Marks. They offer additional flight instructor and other training programs for a fee, and provide operational advice based on franchisee reports and inspections, delivered through manuals, bulletins, electronic media, telephone consultations, and on-site visits. iFLY Franchising, LLC also conducts inspections, authorizes products and services, advises on pricing strategies, maintains the official iFLY website (including dedicated pages for franchisees), and provides ongoing access to updated Operations Manuals and confidential business information.
Initial Training Hours
240
Training Location
A combination of the franchisee's location and a site selected by iFLY Franchising, LLC.
Ongoing Support
iFLY Franchising, LLC provides continuous support to its franchisees through various channels. This includes offering additional flight instructor training and other programs, which may be mandatory or optional, for a fee. iFLY Franchising, LLC advises franchisees on business operations based on their reports and inspections, using methods like updated manuals, bulletins, electronic media, telephone consultations, and on-site visits. The franchisor also inspects iFLY Businesses to ensure compliance with system standards, authorizes new products and services, and offers guidance on pricing. iFLY Franchising, LLC maintains the official iFLY website, including dedicated pages for franchisees, and provides ongoing access to confidential Operations Manuals. Franchisees are expected to arrange for appropriately rated instructors to conduct ongoing training programs at their location at least 10 times a year, anticipating the need for 10 to 12 Flight Instructors to operate optimally, who will require training to achieve and maintain appropriate ratings.
Franchise Requirements
Ideal Candidate Profile
iFLY Franchising seeks qualified applicants for iFLY Businesses. The ideal iFLY franchisee, or its appointed Managing Owner, must be an active, full-time, hands-on manager who directly supervises the business and devotes best efforts to its promotion. The Managing Owner must own an interest in the franchisee entity and be approved by iFLY Franchising. Candidates must demonstrate sufficient financial capacity to cover the significant initial investment, which ranges from $4,378,500 to $12,249,926, and maintain adequate working capital.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Exclusive
Staff Count
11
Territory Size Requirements
iFLY Franchising, LLC defines the franchisee's territory as a geographical area within a specified radius centered on the approved location, as described in Exhibit A of the Franchise Agreement. The size and configuration of this territory are determined by iFLY Franchising, LLC based on factors such as the wind tunnel's size and location, local population density, and the likelihood of people in the area to patronize the entertainment.
Staffing Notes
iFLY Franchising, LLC requires franchisees to open with at least seven certified Level One Flight Instructors, for whom initial training is provided. To operate at optimal levels, iFLY Businesses typically need between 10 and 12 Flight Instructors, trained at various proficiency levels from 1 to 4, as not all instructors are rated to handle every type of flying maneuver. The franchisor's system standards regulate staffing levels, personnel identification, and employee qualifications, training, dress, and appearance. All flight instructors and other managerial staff must sign confidentiality and non-compete agreements. The overall amount of hourly labor will vary with sales volume, and wages are influenced by geographic location, labor market, and minimum wage laws. Franchisees should anticipate ongoing training programs for their Flight Instructors, to be conducted at least 10 times a year.