Risk Score
Pending analysis
Investment Range
$166,750 - $5,175,460
Total US Locations
234
Business Summary
Sky Zone Indoor Trampoline Parks offer trampoline and various active entertainment attractions for sports and recreational activities. In addition to trampoline attractions, Sky Zone Indoor Trampoline Parks also sell services such as food, beverages, and parties, along with merchandise bearing the Sky Zone brand name. These parks typically range in size from 16,000 to 50,000 square feet and include party rooms and a concession area.
Corporate History
Sky Zone Franchise Group, LLC, a Missouri limited liability company, was founded on November 18, 2008. The company began offering Sky Zone Indoor Trampoline Park franchises in January 2009. These parks feature trampoline attractions for sports, recreational activities, and other active entertainment. In December 2017, CircusTrix Holdings, LLC became Sky Zone Franchise Group's parent company. The affiliate, Sky Zone, LLC, owns the intellectual property and licenses it to the franchisor. Sky Zone Franchise Group, LLC primarily focuses on franchising Sky Zone parks, while its affiliates also own and operate some locations.
Financial Overview
Investment Range
$166,750 - $5,175,460
Franchise Fee (High)
$75,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$98,500
Equipment Costs (High)
$4,330,000
Working Capital
$82,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Sky Zone Franchise Group, LLC's financial statements for the fiscal years ended December 31, 2024, 2023, and 2022, have received an unqualified opinion from their independent auditors. This indicates that the financial statements present fairly, in all material respects, the company's financial position, results of operations, and cash flows. The auditors' report does not identify any conditions or events that raise substantial doubt about Sky Zone Franchise Group, LLC's ability to continue as a going concern, suggesting a stable financial health.
Financing Details
Sky Zone Franchise Group, LLC does not offer any direct or indirect financing to its franchisees. Franchisees will need to secure their own funding through banks or other lenders. Sky Zone Franchise Group, LLC also does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
234
Franchised Units
120
Corporate Units
114
Avg Square Footage
33,000
Franchising Since
2009
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
Sky Zone Franchise Group, LLC has been involved in three legal matters. In 2016, a lawsuit by Barclay Poole alleged breach of contract and fiduciary duty against Sky Zone Franchise Group, LLC and its former principal. This case was settled in May 2018 for $828,426. In October 2018, a Sky Zone franchisee, Ottway II, LLC, initiated arbitration, claiming unfair competition and misuse of confidential information by a Sky Zone affiliate. This dispute was settled in February 2020, resulting in the termination of the franchisee's agreement and the acquisition of their assets by a Sky Zone affiliate for $1,112,500. More recently, in February 2023, Sky Zone Franchise Group, LLC's affiliate, House of Trix, LLC, faced a consent order from the California Commissioner of Financial Protection and Innovation. This was due to selling unregistered franchises in California in late 2021 while not registered to do so, and making an untrue statement to the Commissioner regarding the number of unregistered franchises sold. As a result, House of Trix, LLC agreed to pay a $5,000 administrative penalty and inform affected franchisees.
Bankruptcy History
Sky Zone Franchise Group, LLC has no bankruptcy information to report, as stated in Item 4 of their Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise, Sky Zone franchisees must correct any deficiencies within a specified cure period, have substantially complied with the Franchise Agreement, and be in full compliance at the time of giving notice to renew and on the renewal date. Franchisees must remodel or relocate their park as required and provide written notice of their election to acquire a successor franchise between six and twelve months before the current agreement expires. A non-refundable successor franchise fee, equal to 25% of the then-current initial franchise fee for new franchises, is also required. Franchisees may also need to sign a new franchise agreement with potentially different terms and conditions, along with guarantees and general releases.
Training & Support Program
Franchisor Assistance
Sky Zone Franchise Group, LLC provides pre-opening assistance that includes evaluating and approving the franchisee's chosen location, reviewing lease provisions, and furnishing general specifications and floor plans for the park. They also provide an initial training program for the franchisee (or Responsible Person) and a management team, along with lists of required start-up inventory, furniture, fixtures, software, equipment, and signs. During operation, Sky Zone Franchise Group, LLC offers ongoing guidance on operational issues, Internet and telephone consultation, wholesaling services for products, ongoing marketing programs (excluding collateral), and access to the Master Insurance Program. Franchisees may also be required to attend mandatory or optional meetings, seminars, and conferences, and benefit from the franchisor's research and development in operating methods and quality control programs, including inspections and mystery shopper services.
Initial Training Hours
41
Training Location
Training Park
Ongoing Support
After opening, Sky Zone Franchise Group, LLC provides ongoing support to its franchisees through refresher training courses, which may be required for the franchisee, Responsible Person, or employees. They offer general guidance on operational issues, Internet and telephone consultation, and wholesaling services for various products. Ongoing marketing programs are also provided, excluding collateral. Franchisees are expected to attend mandatory and optional meetings, seminars, and conferences, and benefit from the franchisor's research and development efforts. Quality control programs, including mystery shopping and inspections, are conducted to ensure high standards. Franchisees also have access to the Master Insurance Program. Additional guidance or special training can be provided for a reasonable fee, plus travel and living expenses, if requested by the franchisee or required by Sky Zone Franchise Group, LLC. At least one representative from each park must attend annual conventions.
Franchise Requirements
Ideal Candidate Profile
Sky Zone seeks franchisees, or their designated "Responsible Person," who are capable of actively directing business affairs and have successfully completed the required training program. Ideal candidates and their owners should demonstrate strong moral character, aptitude, a positive attitude, relevant experience, business acumen, and the financial capacity to effectively operate a Sky Zone Indoor Trampoline Park. Franchisees are expected to dedicate their best efforts to developing and operating their business and should avoid engaging in other activities that conflict with their Sky Zone obligations or require substantial management time. Furthermore, neither the franchisee nor their owners or affiliates should possess a direct or indirect ownership interest in, or provide services for, a "Competitive Business."
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
hands-on
Territory Type
Protected
Territory Size Requirements
Sky Zone Protected Territories are typically defined by zip codes or metes and bounds, encompassing a population of at least 150,000 people. For Multi-Unit Development Agreements, the Development Area may consist of multiple maps, each with an estimated population density of at least 150,000 people. Sky Zone Franchise Group, LLC uses third-party analytics tools to determine population density for these territories.
Staffing Notes
Sky Zone Indoor Trampoline Parks require a management team consisting of at least three managers and one additional leader, plus the Responsible Person for the franchisee entity. The park must always be supervised by at least one manager, assistant manager, or team lead during all operating hours. All employees must undergo thorough screening, including annual criminal background checks, as specified by Sky Zone Franchise Group, LLC, which may influence hiring decisions. Franchisees are solely responsible for all employment decisions, such as hiring, firing, compensation, and training. All personnel who have access to Sky Zone Franchise Group, LLC's confidential information must sign nondisclosure agreements, which the franchisee must provide to the franchisor upon request.