Own A
FranchiseWhat Makes Trampoline Park Businesses Profitable?
Investments and Returns
What Makes Trampoline Park Businesses Profitable?
Owning a trampoline park requires a substantial investment, but it can also provide a solid return on investment in a fairly short time frame. Trampoline parks hit on a number of attractive areas – physical health, safe children’s activities, corporate team building, and overall good fun, to name a few. When a business can shine in multiple areas, you have a solid potential investment opportunity.
Jumping into trampoline park profits, operating costs, and investment returns is different with each franchise opportunity. However, there is some general industry knowledge that’s good to know when researching opportunities with opening a trampoline park.
An Inside Look at Trampoline Park Profits
When looking at trampoline park profits, FinModelsLab provides a breakdown of what to expect in revenue and expenses.
Revenue Generation
According to their business plan research, the average revenue for an indoor trampoline park is $1 million to $3 million. Many factors contribute to this total including the location of the park, the number of visitors and their spending patterns, prices charged, and the total package of services provided.
At Altitude Trampoline Park, our average sales per location is $2.18 million, according to our most recent franchise disclosure document (FDD), with the top 50% of our franchise owners hitting the $2.2 million mark in net revenue. As we continue to add locations, we anticipate these numbers will continue to climb.
Expenses
The average annual operating costs for a trampoline park in the FinModelsLab study were between $500,000 and $1 million. Again, many factors contribute to these numbers such as rent, staffing costs, marketing, and so on.
With Altitude, we can tell you that our EBITDA (earnings before interest, taxes, depreciation, and amortization) was 20.51% of gross sales in 2022, based on our FDD, and that’s on the high end of the hospitality margins, another industry that focuses heavily on the customer experience.
Factors that Drive Trampoline Park Revenue
Trampoline parks differ across the industry, so it’s important to understand what drives trampoline park profits if you’re looking to become an owner. Some key elements that contribute to revenue generation include:
- Size of the park. The more capacity you offer, the more revenue you can potentially generate. It’s important that your footprint can be used as efficiently as possible to provide an array of experiences and keep operating costs manageable.
- Revenue streams. In addition to admission fees, does the park offer other revenue streams? This might include concessions, party rooms, or additional ways that customers can spend money on site. Altitude offers revenue stream diversification based on activities plus customer base as they promote non-profit fundraising options, team building, and more.
- Operating expenses. Balancing the correct number of staff to run the operation safely, while maintaining smart employee costs, is an important skill. A solid training program also helps ensure your employees can contribute to the operation in multiple ways.
- Marketing plans. Of course, you’re going to need good marketing to keep the trampoline park top of mind for individuals and families. Altitude has a significant marketing presence in the local community and nationally. The development of membership options and ways to boost participation are always part of our strategies.
Altitude Trampoline Park is Growing
Although only franchising since 2016, Altitude Trampoline Park climbed onto the Entrepreneur Franchise 500 list this year, with a No. 355 ranking. With an increase of 6.8% in the past three years, we surpassed 80 locations in 2023.
We had a significant average unit volume increase in the top-performing parks, proving that this business just gets better and better every year. We also rolled out a membership program that has caught on very quickly, with more than 100,000 memberships sold so far! The membership revenue alone is covering the rent for many of our park locations!
Altitude provides a proven model for opening and operating a trampoline park business. This is the kind of venture where you don’t want to miss any of the details because they could compromise safety or impact the overall experience. Altitude has created a model that prioritizes both while being a fiscally responsible investment for the enthusiastic entrepreneur.
Jump on an Altitude Franchise
Your initial investment range for an Altitude Trampoline Park is $1.7 million to $2.8 million. We offer single-unit and multi-park development agreements.