Altitude Trampoline Park

# Altitude Trampoline Park Franchise Intelligence Report

## Executive Summary

Altitude Trampoline Park is a mid-sized player in the indoor trampoline park franchise space with 66 locations across 24 states. The investment is substantial ($1.6M-$3M) with a 6% royalty fee. The brand generated $177M in systemwide sales in 2024 (up 15.3% YoY) with average unit volumes of $1.9M and estimated earnings of $269K-$345K. The franchise has disclosed litigation in its FDD related to the NRD Capital acquisition and faces industry-wide liability concerns inherent to trampoline parks.

## The Business

Altitude Trampoline Park operates indoor family entertainment centers featuring wall-to-wall trampolines, foam pits, dodgeball courts, basketball dunk zones, ninja courses, ziplines, and soft play areas. Parks range from 20,000-100,000 square feet and target ages 6 through adult. Revenue streams include general admission, birthday parties, corporate events, lock-ins, and fundraisers. The parent company, Indoor Active Brands (owned by NRD Capital), also owns pickleball franchise The Pickle Pad.

## The Numbers

- **Total Investment:** $1,625,000 - $2,957,500 (some sources show up to $3.26M) - **Franchise Fee:** $45,000 - $50,000 - **Royalty Fee:** 6.0% - **Average Gross Sales:** $1,919,103 - **Estimated Earnings:** $268,675 - $345,439 - **Payback Period:** 8-10 years - **Contract Term:** 10 years - **Multi-Unit Development (5 parks):** $91,000 - $96,000

## System Health

- **Current Units:** 66 franchised locations in 24 states (2024 FDD) - **2024 Systemwide Sales:** $177 million (up 15.3% YoY) - **Franchise Times Ranking:** #250 on Top 400 (2025)

The system is growing moderately. One Nashville franchisee reported $3M in sales (nearly $1M above average) with 8% YoY growth, while an Austell, GA location saw 25% YoY growth. The brand positions itself as a lower-cost alternative to Urban Air.

## Franchisee Experience

**Positive signals:** - Two weeks of initial training at corporate headquarters - Comprehensive support from site selection through grand opening - Dedicated operational support and resources - Franchisees report rewarding experience working with families and kids - Franchisor helped connect one franchisee with a lender familiar with the brand

**Franchisee Stories:** - Brandon Gadish (Nashville/Austell): Nearly decade-long franchisee, Nashville location doing $3M with 8-25% YoY growth - Orlando Ochoa (Fort Worth): Former tech professional, experienced $50K construction cost overrun due to rock excavation, but describes the venture as "very rewarding"

## Risk Assessment

**Litigation Disclosed in FDD:** - Co-founder Curt Skallerup was involved in lawsuits with NRD Capital (buyer of Altitude) around the time of COVID closures. According to Skallerup, "We were basically blamed for COVID." Both parties confirmed the lawsuits have been settled. - A 2018 lawsuit was filed after a child suffered a leg injury at a New Jersey location, claiming poor maintenance and insufficient safety protocols.

**Industry-Wide Concerns:** - Trampoline parks remain largely unregulated at the state level - The IATP safety standards are voluntary recommendations, not legal requirements - Inherent liability risk in high-activity entertainment venues - Each park is independently owned; franchisor disclaims liability for local operations

**Construction Risks:** - Buildouts can exceed estimates significantly (one franchisee hit rock during excavation, adding $50K) - Long payback period (8-10 years) requires patient capital

## Competitive Position

| Metric | Sky Zone | Urban Air | Altitude | |--------|----------|-----------|----------| | 2024 Sales | $642M | $663M | $177M | | Locations | 300+ | 193 | 66 | | Size (sq ft) | 15K-40K | 30K-50K | 20K-100K | | Investment | Higher | $2.5M-$3M | $1.6M-$3M |

Altitude is positioned as the value option with lower fees to help franchisees maximize cost-to-profit ratios. Urban Air offers more diverse attractions (trampolines are <20% of features), while Sky Zone pioneered the industry with the largest footprint.

## Validation Questions

1. What were your actual construction costs vs. the FDD estimate? 2. How has liability insurance cost trended over the past few years? 3. What is your experience with injury claims and how does corporate support you? 4. How do you compete against Sky Zone or Urban Air in your market? 5. What is your actual profit margin after all expenses? 6. How long did it take to reach breakeven? 7. What is the biggest operational challenge day-to-day?

## Data Gaps

- Details of the NRD Capital/Skallerup litigation settlement terms - Comprehensive injury statistics across the system - Unit closure rates and franchisee turnover - Detailed breakdown of ongoing insurance costs - Specifics on marketing fund usage and effectiveness

## Verdict: MODERATE

Altitude Trampoline Park is a viable option in the indoor entertainment franchise space, offering lower investment than Urban Air and reasonable unit economics. The 15% YoY sales growth is encouraging. However, the 8-10 year payback period is long, the FDD discloses litigation, and the trampoline park industry carries inherent liability risks that are largely unregulated. Best suited for investors with substantial capital, risk tolerance, and experience in managing high-traffic entertainment venues.