Bottom line
- Total investment $2.2M – $4.7M including a $75K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $2.9M/year (median $2.9M). Estimated payback in 4.1 years.
- Rated STRONG with a risk score of 53/100. SBA loan default rate of 0.0% across 109 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Sky Zone unit return on the cash you put in?
Unlevered ROIC · per unit
12%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Sky Zone units return on equity?
Equity IRR · 5-yr
27.9%
3.42× MOIC
Year-1 DSCR
2.91×
EBITDA ÷ debt service
Equity required
$11.2M
on $23.2M purchase
Total debt
$11.9M
SBA $5.0M + senior + seller note
Overview
About
Sky Zone franchisees operate indoor trampoline parks featuring open-jump areas, dodgeball courts, foam pits, and ancillary attractions (fitness classes, birthday parties, special events). Day-to-day operations include facility management, staff scheduling, customer safety/waiver processing, marketing, and revenue management across membership, walk-in, and event bookings.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 31 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Sky Zone presents moderate-to-cautious risk due to elevated litigation exposure, slow unit growth, high capital requirements relative to returns, and absence of audited financial disclosures, warranting deep franchisee validation before investment.
Score breakdown · what drove the 53 / 100 rating
- 01HIGHMultiple litigation matters including IP infringement, member disputes with fiduciary duty claims, unfair competition arbitration, and regulatory consent order suggest governance and compliance issues
- 02MINORSlow unit growth of 6.8% YoY with 193 units indicates market saturation or franchisee performance challenges in a maturing system
- 03MINORHigh initial investment range ($2.18M–$4.72M) against average net income of $836K yields 2.5–4.7 year payback with significant capital at risk
- 04MEDMissing Item 19 financial performance representations limits ability to validate disclosed average revenue and net income figures across actual franchisee cohorts
- 05HIGHLitigation pattern suggests internal conflicts between franchisor and franchisees, affiliate entities, and management—indicating potential operational friction
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
97 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Sky Zone · FDD (2024) PDF