Is owning a trampoline park profitable? Initial costs to open a trampoline park average $1.2 million to $1.8 million. Parks in commercial areas often succeed. Location impacts costs. Rent varies based on area desirability. Profitability depends on investment size and customer volume.
What are the costs involved in starting a trampoline park business? Business registration fees cost $750. Legal expenses for licenses and permits cost $7,300. Trampoline equipment is the most significant expense, ranging from $100,000 to $1,500,000. The range depends on location, park size, and equipment quality.
Building an 18,000 square foot park with 17 foot ceilings can cost $750,000 to $1.8 million. Adding extra gaming facilities increases expenses. Ongoing operational expenses include insurance, audio/visual equipment, security systems, concessions inventory, office furniture, and marketing.
Costs are categorized into venue rental and buildout, equipment, and operating budget. Launch requirements include trampolines, safety nets, flooring, lighting, bathrooms, concessions area, lobby furniture, point-of-sale systems, and more.
Are trampoline parks a good investment? Trampoline parks and their franchises can be very profitable, with the potential to earn more than $1 million annually. However, the success of an investment depends on the business plan, location, facilities, and more. Considering the break-even period is also crucial.
Advantages of Trampoline Park Investment
- Diverse Target Audience: They attract people of all ages, from children to the elderly, increasing potential customer flow.
- Sustainable Late Investment: After initial setup, the majority of future investments can be covered through business revenue.
- Repeat Business: A variety of attractions encourages customers to return, which increases profits.
- Modular Design: Parks can be modified to match current trends, adding to their appeal.
- High Profit Potential: Despite high startup costs, the profitability can be compelling. A park in California reported a gross revenue of $2 million with a profit margin of 39%.
The profit potential is significant. For example, a 1,000 square foot park with a cost of around $1 million could start seeing a return within 6-12 months. The vast range of target customers increases the likelihood of high customer traffic, which is crucial for success. Even though updates are necessary, the ongoing costs after the initial investment can often be covered by the park’s revenues. Additionally, the modular design and wide array of attractions help in maintaining a profitable business.