How much does it cost to open a Sky Zone franchise?

The total initial investment for a Sky Zone franchise ranges from $2,330,960 to $4,187,960. This includes the franchise fee of $75,000, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Sky Zone franchise?

Sky Zone franchisees pay a 6.0% royalty fee and a 2.0% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a Sky Zone franchise?

Based on Item 19 financial performance data, the median Sky Zone franchise generates $2,035,719 in annual revenue. Estimated owner profit is approximately $346,072.

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Entertainment

Sky Zone Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$2,330,960 – $4,187,960

Franchise Fee

$75,000

Royalty Rate

6.0%

Initial Investment Range

Low: $2,330,960 High: $4,187,960

The total initial investment to open a Sky Zone franchise ranges from $2,330,960 to $4,187,960, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $75,000.

Midpoint estimate: $3,259,460

Franchise Fee

$75,000

One-time initial fee

The Sky Zone franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Sky Zone brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

6.0%

of gross revenue

Ad/Marketing Fund

2.0%

of gross revenue

Total Ongoing Fee Burden: 8.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalty Fee	6.0	PCT	Payable once per month on the third day after preceding month ends via EFT. Gross Sales excludes applicable sales/use/service taxes and refunds (not including chargebacks).
Ad Fee	2.0	PCT	Currently 2% of Gross Sales. Franchisor has right to increase up to 2.5% of Gross Sales. Payable once per month on the third day after preceding month ends via EFT.
Local Advertising Funding Requirement	4.0	PCT	$12,000 minimum during first month of Park operations. Thereafter, minimum of 4% of Gross Sales per month on local advertising. Shortfall may be collected as additional Ad Fee or used by franchisor for local marketing.
Technology Fee	1480.0	FIXED	Currently $1,480 per month for technology-related services including website/email hosting, help desk support, software development, POS systems. Begins two months prior to Park opening. May be increased or decreased based on service provider costs, but not more than franchisor costs plus 20%.
Transfer Fee (Franchise Agreement)	50.0	PCT	50% of then-current initial franchise fee for transfers of Park, Franchise Agreement, or controlling interest. $2,500 for transfers among existing owners or non-controlling transfers. Payable prior to transfer when signing conditional consent. May be partially refundable if transfer does not occur.
Transfer Fee (Multi-Unit Development Agreement)	2500.0	FIXED	$2,500 for administrative costs for transfers of ownership interests less than or equal to 49%. Development rights cannot be transferred.
Transfer Fee Deposit	15000.0	FIXED	$15,000 deposit paid when signing conditional consent to transfer. Refunded less any amounts due (including insurance deductibles) within 60 days following transfer closing date.
Successor Franchise Fee	25.0	PCT	25% of then-current initial franchise fee for new franchises. Due upon executing successor franchise agreement via wire transfer or EFT.
Extension Fee (Franchise Agreement)	100.0	PCT	100% of then-current initial franchise fee for additional extension period beyond first three-month extension to secure premises. Due upon franchisor approval of extension request.
Extension Fee (Multi-Unit Development Agreement)	50.0	PCT	50% of original Development Fee if granted extension to Development Schedule. Due upon franchisor approval of extension request.
Space Plan Fee	350.0	FIXED	First three space plans provided at no cost. $350 for each additional space plan after the third. Due upon delivery of space plan.
Relocation Expenses	N/A	VARIABLE	Actual costs incurred by franchisor in connection with Park relocation, if consented to by franchisor.
Call Center Program Fee	1200.0	FIXED	Not currently charged by franchisor but estimated between $1,000-$1,400 per month if imposed. Payable to third-party service providers. May increase up to 20% once per calendar year.
Interest on Late Payments	18.0	PCT	Lesser of 18% annually or maximum rate permitted by applicable law. Applied to all amounts owed but not paid when due, from due date until payment received in full.
Overdue Supplier Payments	N/A	VARIABLE	Franchisor may pay overdue supplier amounts on franchisee's behalf and withdraw from franchisee's bank account. Due upon demand.
Non-Compliance Fee	250.0	FIXED	$250 per day for each day franchisee remains out of compliance after cure period. $2,500 per violation for failure to obtain guest waivers. Due upon demand.
Inspection and Compliance Reimbursement	N/A	VARIABLE	Reimbursement for actual costs including travel and living expenses for follow-up inspections or assessments required after initial inspection identifies issues. Due upon demand.
Training and Assistance Fees	500.0	FIXED	Currently up to $500 per day plus travel and living expenses for training provided after minimum required training. May increase by up to 20% annually. Due upon request or as required by franchisor.
Annual Convention Fees	1500.0	FIXED	Currently up to $1,500 per person plus travel and living expenses. Due 15 days before convention begins. If not paid by deadline, automatically debited from bank account.
Maintenance Costs	N/A	VARIABLE	Actual costs for failing or refusing to correct deficiencies at Park. Due upon demand.
Product Purchases and Installation of Attractions	N/A	VARIABLE	Varies based on products ordered including Attractions with installation, balls, stickers, wristbands, SkySocks. Due as incurred per Purchase Order.
Alternate Supplier Approval Costs	N/A	VARIABLE	Reasonable costs of inspecting proposed supplier and actual costs of testing proposed products or evaluating proposed service/service provider. Due upon demand.
Master Insurance Program Costs	6.0	PCT	Total Cost of Risk currently between 2.0% and 10.0% of Gross Sales. Subject to recalculation every six months and could increase or decrease. Due monthly.
Third-Party Insurance Coverages	N/A	VARIABLE	Actual costs for third-party insurance coverages. Due upon demand.
Quality Control Programs	N/A	VARIABLE	Actual costs as incurred for quality control programs.
Advertising Cooperatives & Special Promotion Fees	N/A	VARIABLE	As required and as incurred for advertising cooperatives and special promotions.
Audit	N/A	VARIABLE	Understated amounts with interest due within 15 days of receiving report. Franchisor's costs and expenses of audit including professional fees, travel, meals and lodging due upon demand.
Management Fee	50.0	PCT	50% of Gross Sales plus travel and living expenses. As incurred when franchisor provides management services.
Taxes	N/A	VARIABLE	Actual costs for taxes. Due upon demand.
Indemnification	N/A	VARIABLE	Amount of franchisor's liabilities, fines, losses, damages, costs and expenses including reasonable attorneys' fees. Due upon demand.
Costs and Attorneys' Fees	N/A	VARIABLE	Actual costs and expenses including attorneys' fees. Due upon demand.
Arbitration and Proceeding Costs	N/A	VARIABLE	Reasonable costs and expenses including attorneys' fees. Due upon conclusion of arbitration or other proceeding.
Liquidated Damages	N/A	VARIABLE	Greater of: (i) $100,000; or (ii) combined monthly average of Royalty Fees, Ad Fees, and other fees from prior 12 months multiplied by remaining months in Initial Term (or by 12 if open less than 12 months). Due immediately upon termination by franchisor for cause or by franchisee without cause.
Reimbursement for Other Obligations and Duties	N/A	VARIABLE	Actual costs and expenses for other obligations and duties. Due upon demand.
Late Report Fee	100.0	FIXED	$100 per instance plus $100 per day or $100 per month while out of compliance (as applicable). Due as incurred.

What You Get

Financial Performance (Item 19)

Median Revenue

$2,035,719

per year, per location

Mean Revenue

$2,929,843

per year, per location

Profitability Estimate

Estimated Owner Profit

$346,072

per year

Profit Margin

17.0%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 9.4 years

Based on midpoint investment of $3,259,460 and estimated annual owner profit of $346,072.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

2.5%

Low risk — below industry average

Net Unit Growth

+120 units

From Next Fiscal Year to 2024

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
Next Fiscal Year	—	+11	—	—	—
2022	117	—	—	—	118
2023	118	—	—	—	126
2024	126	—	—	—	120

Is a Sky Zone Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Sky Zone franchise opportunity:

Overall Score

62/100

Moderate opportunity

Est. Payback Period

9.4 yrs

Longer payback

Risk Level

Low

2.5% annual closure rate

Sky Zone shows a moderate score across our evaluation criteria. Careful due diligence is recommended. With median unit revenue of $2,035,719 and a combined fee burden of 8.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.