In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for an Urban Air Adventure Park franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for an Urban Air Adventure Park franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Urban Air Adventure Park outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Urban Air Adventure Park franchise opportunity

Section V – Presentation and analysis of Urban Air Adventure Park’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average gross sales, cost of goods sold, occupancy, advertising, payroll, insurance, other costs, and EBITDA, by quartile, for the 100 franchised 2.0 Adventure Parks that operated the entire 2023 calendar year and reported complete data

• 2023 average gross sales, cost of goods sold, occupancy, advertising, payroll, insurance, other costs, and EBITDA for the 23 franchised 2.5 Adventure Parks that operated the entire 2023 calendar year and reported complete data

Section VI – Key ratios, comparables, computations, and analyses for the Urban Air Adventure Park franchise opportunity (exclusive content for Platinum subscribers)

Section I – Urban Air Adventure Park Franchise Costs

• Initial Franchise Fee:  $100,000
• Security Deposits for Commercial Lease:  $30,000 to $70,000
• Other Security Deposits:  $2,500 to $10,000
• Business License/Government Approval:  $300 to $25,000
• Leasehold Improvements:  $1,585,000 to $2,850,000
• Audio-Visual (Equipment and Installation):  $130,572 to $285,183
• Architectural Plans:  $56,835 to $114,000
• Café Equipment and Café Furniture:  $120,000 to $205,000
• Smallwares:  $10,000 to $15,000
• Exterior Signage:  $12,500 to $50,000
• Interior Signage:  $10,000 to $25,000
• Furniture, Fixtures, and Equipment:  $60,000 to $69,000
• Point-of-Sale and Computer Systems:  $7,558
• Base Attraction Equipment 2.0 Package:  $1,166,460 to $1,363,156
• Professional Fees:  $4,000 to $10,000
• Travel and Related Expenses for Training:  $1,500 to $7,500
• Initial Inventory (Merchandise):  $12,000 to $18,000
• Initial Inventory (Food):  $15,000 to $22,200
• Pre-Opening Wages:  $15,000 to $35,000
• Insurance:  $49,000
• Third-Party Inspection Fees:  $1,250 to $3,500
• Grand Opening Advertising:  $45,000 to $60,000
• Working Capital:  $120,000 to $240,000
• Total Estimated Urban Air Franchise Costs:  $3,554,475 to $5,634,097

Section II – Urban Air Adventure Park’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $100,000
• Royalty Fee:  7% of monthly Gross Sales
• National Advertising Fund (“NAF”) Contribution:  up to 5% of monthly Gross Sales; currently, 0% of Gross Sales
• Local Marketing Expenditure:  up to 6% of monthly Gross Sales; currently, 5% of Gross Sales
• Advertising Cooperative (if established):  amount determined by majority vote of cooperative members

Section III – Number of Franchised and Company-Owned Urban Air Adventure Park Outlets

Franchised

2021

• Outlets at the Start of the Year:  148
• Outlets at the End of the Year:  148
• Net Change:  0

2022

• Outlets at the Start of the Year:  148
• Outlets at the End of the Year:  161
• Net Change:  +13

2023

• Outlets at the Start of the Year:  161
• Outlets at the End of the Year:  179
• Net Change:  +18

Company-Owned

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  3
• Net Change:  +1

2022

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  5
• Net Change:  +2

2023

• Outlets at the Start of the Year:  5
• Outlets at the End of the Year:  4
• Net Change:  -1

Section IV – News Updates on the Urban Air Adventure Park Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Urban Air Adventure ParkABC Franchise (Item 19, 2024 FDD)

Part 1 – 2.0 Parks

• At the end of Urban Air Adventure Park’s 2023 fiscal year, there were a total of 179 franchised Trampoline Parks and Adventure Parks open and in operation in the United States (comprised of 170 franchised Adventure Parks and 9 franchised Trampoline Parks).

• Part 1 excludes the 30 franchised Adventure Parks that opened during fiscal year 2023 but did not operate the entire year or reported incomplete data.

• The Gross Sales data for 9 franchised Trampoline Parks was excluded because Urban Air Adventure Park no longer offers the opportunity to acquire the right to develop and operate a Trampoline Park under the current disclosure document.

• Additionally, 8 Adventure Parks were owned by more than one ownership group in 2023 and have been excluded from the units providing full sales and operating expenses for the full year of 2023.

• Of the remaining Parks, 123 of these Parks provided gross sales and operating expenses for the full year of 2023, and 100 of those Parks were 2.0 Parks for which data is reflected in Part 1.

Top Quartile

• Number of Parks:  25
• Average Gross Sales:  $5,254,695
• Average Cost of Goods Sold:  $654,227
• Average Occupancy:  $775,121
• Average Advertising:  $303,758
• Average Payroll:  $1,113,041
• Average Insurance:  $336,450
• Average Other Costs:  $646,980
• Average EBITDA:  $1,425,117 (26.8%)

2nd Quartile

• Number of Parks:  25
• Average Gross Sales:  $3,509,257
• Average Cost of Goods Sold:  $428,970
• Average Occupancy:  $582,293
• Average Advertising:  $172,819
• Average Payroll:  $799,464
• Average Insurance:  $231,626
• Average Other Costs:  $459,344
• Average EBITDA:  $834,740 (23.7%)

3rd Quartile

• Number of Parks:  25
• Average Gross Sales:  $2,741,855
• Average Cost of Goods Sold:  $346,041
• Average Occupancy:  $557,282
• Average Advertising:  $132,729
• Average Payroll:  $657,061
• Average Insurance:  $181,751
• Average Other Costs:  $339,520
• Average EBITDA:  $527,471 (19.2%)

4th Quartile

• Number of Parks:  25
• Average Gross Sales:  $2,023,643
• Average Cost of Goods Sold:  $316,073
• Average Occupancy:  $467,834
• Average Advertising:  $94,797
• Average Payroll:  $501,886
• Average Insurance:  $145,970
• Average Other Costs:  $277,112
• Average EBITDA:  $219,971 (9.9%)

Average (Calculated by Franchise Chatter)

• Number of Parks:  100
• Average Gross Sales:  $3,382,362 (100.0%)
• Average Cost of Goods Sold:  $436,328 (12.9%)
• Average Occupancy:  $595,632 (17.6%)
• Average Advertising:  $176,026 (5.2%)
• Average Payroll:  $767,863 (22.7%)
• Average Insurance:  $223,949 (6.6%)
• Average Other Costs:  $430,739 (12.7%)
• Average EBITDA:  $751,825 (22.2%)

Part 2 – 2.5 Parks

• Of the 123 eligible and reporting Adventure Parks, 23 were 2.5 Parks for which data is reflected in Part 2.
• Four 2.5 Parks were excluded because they did not provide Urban Air Adventure Park with their full year 2023 Unit Expenses and EBITDA which are reported in Part 2.

All Parks

• Number of Parks:  23
• Average Gross Sales:  $4,381,993 (100.0%)
• Average Cost of Goods Sold:  $502,521 (11.5%)
• Average Occupancy:  $867,990 (19.8%)
• Average Advertising:  $202,091 (4.6%)
• Average Payroll:  $1,070,726 (24.4%)
• Average Insurance:  $276,794 (6.3%)
• Average Other Costs:  $552,558 (12.6%)
• Average EBITDA:  $909,314 (20.8%)

• “Costs of Goods Sold” includes the total cost of all food, beverages, merchandise, and other costs related to products and services sold by the Adventure Parks, including distribution and delivery costs.

• “Occupancy” includes rent (including both minimum rents and percentage rents), utilities (e.g., electricity, gas, water, cable, internet, telephone), and any sales or other taxes imposed thereon and any pass-through expenses from the landlord.

• Taxes refer to real estate taxes and assessments levied against the property upon which the Adventure Park is located. Sales and use taxes are excluded from occupancy costs.

• Common area expenses reflect charges for maintenance of parking lots and common use areas, landscaping design and maintenance, weather-related maintenance (e.g., removal of debris and snow), security staff, taxes and insurance for common areas, and such other charges customarily paid by tenants for services typically provided by landlords.

• “Advertising” includes advertising, promotional, and marketing expenses for the Adventure Parks in the Protected Area to satisfy the Local Marketing Expenditure requirement.

• “Payroll” includes personnel wages, management salaries, benefits, and payroll taxes but excludes bonuses, paid time off, severance payments, and fringe benefits. In addition, payroll excludes the cost of training any hourly or management personnel and any disbursements made to the owners of the franchisees.

• The costs of providing medical and dental insurance for employees will vary depending on many factors, including the extent and amount of coverage provided and the loss experience of the group in addition to the size of your staff.

• “Insurance” includes information related to commercial general liability insurance only. Your costs will vary if you elect to purchase additional insurance coverage and depend on numerous factors, including the carrier you select, the jurisdiction in which you operate your Adventure Park, your loss experience, and financial creditworthiness.

• “Other Costs” includes royalty fees, office expenses (e.g., office and cleaning supplies), and processing fees (e.g., payroll, point of sale, and payment processing and other bank charges).

• “EBITDA” means the earnings before interest, taxes, depreciation, and amortization. As is customary, it excludes expenses related to debt services costs, whether principal or interest.

• Of the 100 reporting 2.0 Parks, 44 (or 44%) had an actual EBITDA equal to or exceeding the average EBITDA.

• Some Adventure Parks have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.

Section VI – Urban Air Adventure Park Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️