About Launch Trampoline Park and Launch Park Franchise
Launch Trampoline Park is a family entertainment franchise that has been franchising since 2013, backed by LTP Investments LLC.
Launch locations feature wall to wall trampolines, foam pits, dodgeball courts, ninja warrior courses, and other active attractions designed for guests of all ages.
The parks also host birthday parties, group events, and fitness classes, creating multiple revenue streams within a single facility.
Launch Trampoline Park and Launch Park Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $75,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Sales (Brand Development Fund); the greater of 4% of Gross Sales or $4,000 per month (Local Advertising) | National brand fund |
| Total Investment Range | $1,899,900 – $4,524,500 | Includes build-out, inventory, working capital |
The investment range of $1.9M–$4.5M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (1% of Gross Sales (Brand Development Fund); the greater of 4% of Gross Sales or $4,000 per month (Local Advertising)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $75,000 | $75,000 |
| Delayed Opening Fee | $0 | $15,000 |
| Late Notification Fee | $0 | $1,500 |
| Security Deposits | $0 | $200,000 |
| Leasehold Improvements | $650,000 | $1,750,000 |
| Rent – 3 Months | $36,000 | $180,000 |
| Start Up Equipment, Furnishings and Fixtures | $200,000 | $505,000 |
| Attraction Costs | $720,000 | $1,300,000 |
| Computer System | $15,000 | $20,000 |
| Insurance Start Up – 3 Months | $20,000 | $25,000 |
| Permits and Licenses (not including liquor license) | $400 | $15,000 |
| Signage | $25,000 | $50,000 |
| Grand Opening Advertising | $50,000 | $75,000 |
| Blueprints | $35,000 | $75,000 |
| Travel & Lodging Expenses during Training | $6,500 | $10,000 |
| Professional Fees | $2,000 | $4,000 |
| Project Management Fees | $15,000 | $30,000 |
| Management Fee | $0 | $34,000 |
| Additional Funds | $50,000 | $125,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of our then-current initial franchise fee |
| Renewal Fee | 50% of our then-current initial franchise fee |
| Technology Fee | $388 per calendar month |
| Audit Fee | Cost of audit (estimated to be between $3,000 and $5,000) |
| Local Advertising | the greater of 4% of Gross Sales or $4,000 per month |
| Cooperative Advertising | As determined by Cooperative |
| Launch Conference Fee | $1,000 per attendee to attend; $5,000 for failure to attend |
| Initial Training (For New or Replacement Employees) | Currently, $1,500 per person, plus costs |
| Additional On-Site Training | Currently, $450 per day plus costs |
| Interest on overdue or late amounts | Lesser of 1.5% per month or the highest rate allowed by applicable law |
| Insufficient Funds Fee | $100 per occurrence |
| Audit Fee | Cost of audit (estimated to be between $3,000 and $5,000) |
| Product or Supplier Evaluation | Currently, $1,000 |
| Prohibited Product or Service Fee | $500 per violation per day |
| Re-inspection Fee | Reimbursement for our expenses |
| Transfer Fee | 50% of our then-current initial franchise fee |
| Renewal | 50% of our then-current initial franchise fee |
| Liquidated Damages | The average monthly Royalty Fees you paid or owed to us during the 12 months of operation preceding the termination date multiplied by the lesser of (a) 24, or (b) the number of months remaining in the term of Agreement if it had not been terminated |
| Computer Software Licensing | Currently, $1,000 |
| Misc. Software & Platform Fees | Currently, $100 per user |
| Music Licenses | Currently, $2,500 |
| Costs and Attorneys’ Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Repair, Maintenance, Remodeling, and Redecorating | Will vary under circumstances |
| Insurance Reimbursement | Costs of insurance plus a 10% administrative fee |
| Management Fee | 5% of Gross Sales, plus expenses |
| Launch Support Center | $2,000 Flat Fee |
| Mystery Shopper Service | Currently, not collected |
| Proprietary Purchases | Will vary under circumstances |
| Base Management Fees | 2% of Gross Sales |
| Performance Fee | Fee ranging from 0% to 22.5% |
| Centralized Accounting Services Charge | $500 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately four weeks |
| Classroom Training | 55 |
| On-the-Job Training | 105 |
| Training Location | Warwick, RI, or at another location we designate |
| Additional Training | Additional on-site training at your Launch Park for $450 per day plus expenses. Annual mandatory Launch Conference for $1,000 per attendee (or $5,000 for failure to attend for two people). Refresher training courses may be mandatory, with trainees paying for expenses. Managers and other personnel must obtain and maintain ServSafe and TIPS (or similar) certifications at their own expense. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Your Franchise Agreement will specify the Approved Location for your Launch Park. You will be granted a Territory with certain territorial rights and protections, but it is not exclusive. You may face competition from other franchisees, company-owned outlets, or other channels of distribution. There are no minimum territorial boundaries granted. For Multi-Unit Development Agreements, the Development Territory size depends on the number of Launch Parks committed and may be described by contiguous zip codes, street/county boundaries, or other similar methods, and may be depicted on a map. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one (1) additional consecutive successor term of ten (10) years |
| Renewal Fee | 50% of our then-current Initial Franchise Fee |
| Renewal Conditions | 1) Written notice 180-270 days before expiration; 2) Substantial compliance with the Franchise Agreement; 3) Execute our then-current form of franchise agreement; 4) Pay renewal fee; 5) Inspection of Park and 6 months to make required updates; 6) Sign general release; 7) Comply with training requirements; 8) Maintain right to operate from the Site. |
| Transfer Fee | 50% of our then-current initial franchise fee |
| Transfer Conditions | 1) Franchisee and Owners in full compliance; 2) Transferee meets franchisor's standards (good moral character, business experience, financial resources, no competitive business); 3) Transferor and transferee execute general release; 4) Compliance with franchisor's right of first refusal; 5) Transferee and personnel sign confidentiality and non-competition agreements and complete training; 6) Transferee agrees to be bound by current franchise agreement or new form; 7) Pay transfer fee; 8) Lessor consents to lease assignment; 9) Transferee's obligations to transferor are subordinate to franchisor; 10) Transferor and franchisee sign non-competition covenant; 11) Transferee agrees to upgrade Launch Park to current standards; 12) Transferee signs guarantee of obligations; 13) Transfer complies with all laws. |
| Termination for Cause | 1) Failure to locate site, obtain possession, develop, or commence operations within specified times; 2) Abandonment of Launch Park for 5 consecutive days without consent; 3) Unauthorized transfer; 4) Material misrepresentation or omission in application; 5) Conviction of felony or crime against a child, or conduct injurious to goodwill; 6) Unauthorized use/disclosure of Confidential Information, Marks, or Copyrighted Works; 7) Loss of site possession without relocation; 8) Insolvency, bankruptcy, or unsatisfied judgments; 9) Violation of in-term non-compete; 10) Knowingly false records or reports; 11) Lease default; 12) Three or more defaults within 12 months, or two or more of the same default within 12 months; 13) Failure to maintain required insurance; 14) Threat to public health/safety; 15) Refusal of inspection; 16) Interference with franchisor's ability to franchise/license; 17) Interference with contractual relations; 18) Cross-default with other agreements; 19) Failure to comply with Anti-Terrorism Laws; 20) Failure to reimburse for corrective work. |
| Non-Compete Period | two (2) years |
| Non-Compete Details | Upon termination or expiration, neither you nor your Principal Owners (or immediate family members who attended training/had access to Confidential Information) shall directly or indirectly have any interest in or perform services for any Competitive Business located or operating (i) within the Territory, (ii) within a twenty (20) mile radius of your Launch Park, or (iii) within a twenty (20) mile radius of any other Launch Park in the System in operation or under construction. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | You (or your Principal Owner, if an entity) must use good faith and best efforts to develop and expand the market. You are not required to personally supervise daily operations but must designate and retain an approved General Manager who has completed training. You must maintain other personnel for adequate staffing and keep the franchisor informed of all managers' identities. The Launch Park must always be under the direct, on-site supervision of an approved and trained manager. |
| Required Suppliers | Launch Manufacturing is the designated supplier of trampolines (including installation), various attractions equipment (ropes course, ninja course), and your logoed socks. We or our affiliates are currently the only approved supplier of trampoline equipment and trampoline socks. |
| Supply Restrictions | You must maintain in sufficient supply and use at all times only the products purchased from suppliers designated or approved by us and any other products, materials, supplies, paper goods, fixtures, furnishings, equipment, signs and food items that conform with our standards and specifications. You must sell and offer for sale only those products and services that we have expressly approved for sale in writing. |
| Franchisor Revenue from Suppliers | During the fiscal year ending December 31, 2021, we generated $798,185 in gross revenue from the sale of Launch branded merchandise, which was 24% of our total revenue of $3,378,452. Launch Manufacturing LLC generated $1,236,032 in revenue from franchisee purchases. We received $50,154 from allowances and purchases in the form of rebates from required purchases or 1.5% of our total revenue of $3,378,452. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Launch Trampoline Park and Launch Park Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Launch Trampoline Park and Launch Park Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Launch Trampoline Park and Launch Park System Growth
Launch Trampoline Park and Launch Park currently operates 21 franchised locations and 4 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 4 | 2 | 21 |
| 2020 | 3 | 1 | 22 |
| 2021 | 2 | 5 | 21 |
Transfers: 2 | Closures: 5
State Registrations
Registered in 13 states: CA, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Audited by RSM US LLP for year ending December 31.
Launch Trampoline Park and Launch Park Franchise — FAQ
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