Cloudbound Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Cloudbound is a family entertainment franchise operating indoor play parks with themed zones, party rooms, and a cafe for young kids. Franchisees run the venues, managing play areas, parties, staffing, and safety.
FranchiseVerdict summary · 2026
A Cloudbound franchise requires a total initial investment of $2.3M – $4.2M, including a $60K franchise fee and an ongoing 6.0% royalty[2]. The 2026 FDD does not disclose unit-level revenue (no Item 19). FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $2.3M – $4.2M
- 50th pct Recreation & …
- Avg gross sales
- N/A
- 0 outlets
- Royalty
- 6.0%
- 7th pct Recreation & …
- Units
- 0
- 0th pct Recreation & …
- SBA charge-off
- N/A
Quick verdict · Recreation & Entertainment · color = vs category peers
Green = favorable by >10% vs Recreation & Entertainment avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $2.3M – $4.2M including a $60K franchise fee, 6.0% ongoing royalty.
- RETURNSStartup franchisor shell (Cloudbound Franchise Group, LLC), formed Aug 15, 2025. PwC-audited financials cover the stub period Aug 15 - Dec 31, 2025; balance sheet as of Dec 31, 2025. Statement of operations shows no revenue (pre-revenue), only $45,600 SG&A, yielding a $45,600 net loss. Member's equity $454,400 = total assets $454,400, with no liabilities. Only one audited period available (new franchisor), so no prior-year comparative.
- RISKVerdict C (Average), verdict score 41/100 (higher is better).
- DATANo Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Cloudbound Franchise Group, LLC
- Parent company
- Cloudbound Holdings, LLC
- Ultimate parent
- Palladium Equity Partners IV LP
- CEO title
- Chief Executive Officer, CircusTrix Holdings LLC
- David Hoffmann
- Incorporated in
- Delaware
- HQ
- 13155 Noel Road, Office Building 3, Suite #1750, Dallas, Texas 75240
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Sky Zone Franchise Group
- Loscann Insurance Company
- Sky Zone
- House of Trix
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- David Hoffmann
- Headquarters
- Texas
- Founded
- 2025
- FDD year
- 2026
- States available
- 0
Can you afford it, and what does the money buy?
Entry cost runs 144% above the typical recreation & entertainment franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown16 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $60K | $60K | |
| Lease & Security Deposits | $0 | $120K | |
| Leasehold Improvements/Architect | $850K | $1.8M | |
| Signage | $30K | $101K | |
| Attractions | $350K | $730K | |
| Furniture/Fixtures | $80K | $170K | |
| Computer Equipment | $100K | $129K | |
| Equipment and Supplies | $100K | $141K | |
| Licenses, Dues, and Utility Deposits | $5K | $12K | |
| Inventory | $15K | $23K | |
| Travel Expenses/Pre-Opening Wages | $20K | $40K | |
| Professional Fees | $4K | $14K | |
| Insurance Premiums, Allocations and Other Insurance for first quarter of operations | $24K | $65K | |
| Additional Funds - Three Months | $137K | $197K | |
| Grand Opening Marketing Expense | $35K | $35K | |
| Site Development Fee | $5K | $5K | |
| Total initial investment | $1.8M | $3.6M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $2.3M – $4.2M
- Middle of category vs category
- Liquid capital req'd
- $137K – $197K
- Middle of category vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- 6.0%
- percentage · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $15K |
| Renewal fee | $15K |
| Inventory (initial) | $15K – $23K |
| Total fee load | 9.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
Cloudbound did not disclose financial performance in FDD Item 19. The ROIC and return models require Item 19 revenue. Without it all inputs are estimates. You can still run the calculator with your own assumptions by entering an expected revenue figure.
Returns model · single-unit ROIC
What would one Cloudbound unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
3%
Below the 30–60% attractive-franchise band
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Startup franchisor shell (Cloudbound Franchise Group, LLC), formed Aug 15, 2025. PwC-audited financials cover the stub period Aug 15 - Dec 31, 2025; balance sheet as of Dec 31, 2025. Statement of operations shows no revenue (pre-revenue), only $45,600 SG&A, yielding a $45,600 net loss. Member's equity $454,400 = total assets $454,400, with no liabilities. Only one audited period available (new franchisor), so no prior-year comparative.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 9.0% (near the Recreation & Entertainment average).
Disclosure
Franchisor chose not to disclose financial performance representations. You will need to gather unit economics directly from existing franchisees.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Recreation & Entertainment averages
How Cloudbound Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 0%
- vs corporate-owned
3-year detail · Item 20
- Opened (3yr)
- 0
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
No litigation is required to be disclosed in Item 3.
Largest disclosed settlement: $1
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 41 / 100 verdict
- 01HIGHGoing Concern status indicates financial viability questions at corporate level
- 02MINORZero existing franchise units — no operating track record or proof of concept in franchise model
- 03MEDFinancial performance metrics (revenue/net income) completely undisclosed — unable to validate ROI claims
- 04MINORUnknown unit growth trajectory prevents assessment of system momentum or market demand
- 05MED6% royalty on undisclosed revenue streams creates hidden cost exposure
- 06MEDNo litigation disclosed but Going Concern status suggests potential unresolved disputes or structural issues
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 150,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 15 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 17 |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Dallas, Texas |
| Jury trial waiver | Yes |
| Governing law | Texas |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation is required to be disclosed in Item 3.
Items 10, 11
Training & Operations
- Classroom training
- 16 hrs
- On-the-job training
- 26 hrs
- Training location
- One of our Cloudbound Parks or other locations we designate
- Ongoing training
- Required
- Time to open
- 15 mo
- From signing to launch
- Site selection
- franchisee_finds_franchisor_approves
- Franchisor financing
- Not offered
- Item 10
- POS system
- Web-hosted point-of-sale platform (approved vendor)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Web-hosted point-of-sale platform (approved vendor)
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Cloudbound · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Cloudbound franchise?
The total investment to open a Cloudbound franchise ranges from $2.3M – $4.2M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Cloudbound franchise owners earn?
Cloudbound does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Item 19 in the Cloudbound FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Cloudbound FDD and qualifies whose outlets they describe.
What is Cloudbound's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Cloudbound (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
Is Cloudbound a good franchise to buy?
FranchiseVerdict rates Cloudbound as a C-grade franchise with a verdict score of 41 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent Cloudbound, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.