Risk Score
Pending analysis
Investment Range
$105,080 - $153,980
Franchise Fee
$50,000
Total US Locations
37
Business Summary
SkyRun offers franchises for a business specializing in managing and renting vacation homes. SkyRun franchisees provide online listing and property management services to residential property owners who want to rent their properties to transient guests. This involves utilizing SkyRun's proprietary reservation system, online distribution and listing services, and other unique operational methods.
Corporate History
SkyRun Franchising Limited was formed in June 2022 and began offering SkyRun franchises in the summer of 2022. The SkyRun brand and concept were originally created by its founders in 2004 to manage vacation rental properties. In June 2008, SkyRun Partners LLC, which is the current franchisor's predecessor and parent company, was established to further develop and operate these property management services. SkyRun Partners initially offered franchises for a short period before transitioning to a licensing model. By December 2023, the system included 31 franchised outlets, many of which converted from being licensees of the predecessor.
Financial Overview
Investment Range
$105,080 - $153,980
Franchise Fee (Low)
$50,000
Franchise Fee (High)
$75,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$2,500
Equipment Costs (High)
$5,500
Working Capital
$35,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
SkyRun has experienced net losses and negative working capital since its inception in June 2022, resulting in an accumulated member's deficit of $603,623 as of December 31, 2023. These losses are partly due to expenditures made to grow its franchisee base and expand into new markets. To improve its financial situation, SkyRun's management is focusing on selling more franchise agreements to generate royalty revenue. The company believes these actions will provide sufficient funds for at least one year. Additionally, the company's member intends to provide any necessary financial assistance to cover working capital needs if other cash flows are insufficient.
Financing Details
SkyRun does not offer any direct or indirect financing to its franchisees. Franchisees will need to secure their own funding through banks or other lenders, as SkyRun also does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
37
Franchised Units
31
Corporate Units
6
Avg Square Footage
200
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
SkyRun has no litigation to report in this FDD document.
Bankruptcy History
SkyRun has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, SkyRun franchisees must be in good standing and comply with all terms of their current agreement, operating the business according to the System and using only the Marks. Franchisees need to provide SkyRun with at least 210 days' written notice of their intent to renew. They must also upgrade their business and technology to meet SkyRun's current standards. Within 30 days of receiving the necessary documents from SkyRun, franchisees must sign SkyRun's then-current license agreement (which may have different terms), sign a general release, and pay a renewal fee of $5,000.
Training & Support Program
Franchisor Assistance
SkyRun provides extensive assistance to its franchisees, starting before the business opens. This includes defining the designated territory, providing an initial training program, and loaning the operations manual. SkyRun also offers marketing collateral, web and digital templates, a subdomain on its website, and access to its required TravelNet Solutions (TNS) property management software, along with lists of approved suppliers. After opening, SkyRun offers annual and quarterly planning meetings, and additional training sessions (some mandatory, some optional, both at the franchisee's expense). Franchisees have access to phone or website chat for consultative advice, and SkyRun maintains a system-wide brand fund for general promotion. Further marketing assistance, including customizing their website page, is available at an hourly fee. SkyRun continues to provide marketing collateral, forms, and templates for business operations. Franchisees retain access to TNS software, can request updates to their website subdomain (at expense), and utilize the SkyRun phone system. SkyRun also provides lists of specifications and approved suppliers for equipment and services, and may sell necessary equipment, supplies, and other services to franchisees.
Initial Training Hours
56
Training Location
Colorado or virtually
Ongoing Support
After opening, SkyRun franchisees receive annual and quarterly planning and review meetings. SkyRun offers both optional and mandatory additional training sessions, for which franchisees must pay. Franchisees also get consultative advice via telephone or website chat from SkyRun personnel. SkyRun maintains and administers a system-wide brand fund for general promotion. Further marketing assistance, including customizing their website page, is available at an hourly fee. SkyRun continues to provide marketing collateral, forms, and templates for business operations. Franchisees retain access to the TNS property management software and the SkyRun phone system for inbound and outbound calls. SkyRun also provides lists of specifications and approved suppliers for equipment and services, and may sell necessary equipment, supplies, and other services to franchisees.
Franchise Requirements
Ideal Candidate Profile
SkyRun is seeking franchisees with prior business experience or a strong interest in the property management, rental, real estate, or travel industries. Ideal candidates should meet application requirements including minimum liquid capital, pass background and credit checks, and complete an interview process. SkyRun prefers franchisees who will be owner-operators, meaning they will directly supervise the business. If the owner is not the operator, a manager must be appointed to be responsible for the business's operation.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Limited
Territory Size Requirements
SkyRun's designated territories are defined based on the number of short-term rental properties, according to AirDNA data. Depending on the initial franchise fee paid, a territory will generally cover an area with either up to 300 short-term rental properties or approximately 1,000 short-term rental properties. The exact size is influenced by factors like natural boundaries, demographics, whether the business is in an urban, suburban, rural, or tourist area, and the business's own size.
Staffing Notes
SkyRun prefers franchisees to be owner-operators, but the business must always be directly supervised by a Manager. This Manager can be the owner-operator or another employee. Any new Manager is required to complete SkyRun's Initial Training Program before starting their role. The Manager, whether an owner or not, must also sign non-competition and confidentiality agreements. Depending on the number of properties managed, additional staff beyond the Manager may be required.