Do you want to open an adventure trampoline park business by buying Urban Air franchise? If YES, here is how much it cost to open Urban Air franchise successfully. If you are looking towards opening an Urban Air Adventure Park Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
Urban Air Adventure Park was founded in 2011 and they began franchising in 2014, about 6 Years ago. The current CEO is Michael Browning Jr. and they have their corporate head office at 4001 International Pkwy. Carrollton, TX 75007, USA . As of 2018, the company owns and operates 115 franchises in the United States and 26 outside the country.
The Urban Air Adventure Park opportunity represents an exceptional offering in the exploding trampoline park industry. The Franchise offers you the comfort and support of a successful trampoline park operator along with the brand protection and marketing expertise that license and consulting programs cannot provide.
Urban Air Adventure Park is more than just a Trampoline Park. Urban Air is an Adventure Park offering safe, fun, clean and affordable attractions to a wide range of customers. Urban Air will work with you to design an Adventure Park that meets your vision, building requirements and market demands.
With a vast attraction catalog, Urban Air will help you design an Adventure Park your market has never seen before. Urban Air Trampoline and Adventure Parks has been honored by Entrepreneur TV as Top 500 Entrepreneur Franchise in America.
Noted as one of the fastest growing family entertainment centers in the world, Urban Air continues to rack up accolades across board.
Financial Investment Required to Open Urban Air Franchise
Here are areas where you are expected to spend money and the cost associated with it;
1. Initial Investment Range: $1,534,000 – $2,152,500
Please note that to open a location, you should have $200,000 available as liquid capital. The low end of the total investment required to open a new franchise is $1,152,000. $1,609,500 is the maximum that someone opening a location should expect to invest.
2. Franchise Fee: $30,000
New franchisees can expect to pay a $30,000 franchise fee for the rights to open their own location. There are currently 45 Urban Air Trampoline Parks units in operation.
3. Royalty Fee: 7 percent of Gross Sales
And the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
4. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution
At least 1 percent per calendar year and the Due Date: for this is Monthly. Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Urban Air Adventure Park and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative. If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Urban Air Adventure Park if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Urban Air Adventure Park if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Urban Air Adventure Park is required to defend your unsuccessful claim against it.
- Veteran Incentives: 10 percent off franchise fee
- Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
- Financial Assistance: Urban Air Adventure Park has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.
- Investments: $1,534,000 – $2,152,500
- Franchise fee: $30,000
- Minimum Cash: $300,000
- Net Worth: $750,000
- Total Investment: $2,992,600 to $4,670,145
- Ongoing Royalty Fee: 7%
- Ad Royalty Fee: 5%
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