Sky Zone - Standard Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Food & Beverage
• Initial Investment: $2,687,460 to $4,698,960
• Franchise Fee: $75,000
• Royalty: 6% of Gross Sales
• Marketing / Ad Fee: 2% ad fund fee, plus local advertising funding requirement of $12,000 during the first month of operations and 4% of Gross Sales thereafter
• Key additional recurring fees: Technology fee of about $1,480 per month; call center program fee estimated at $1,000 to $1,400 per month if charged
• Number of locations: 120 franchised U.S. parks open as of December 31, 2024; 234 total outlets systemwide at year-end 2024 including company-owned parks
• Best Fit: Manager-led owner with active oversight

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The estimated initial investment ranges from $2,687,460 to $4,698,960, which places this in a very high startup cost category. The initial franchise fee is $75,000, but that is only a small part of the total capital required.

The larger cost drivers appear to be the physical park buildout and launch of a large-format venue. Item 19 references parks ranging from roughly 16,000 to 45,000 square feet, and the Model Parks subset averaged 31,410 square feet with 4.2 party rooms, which suggests a substantial real estate and facility commitment.

The disclosure also estimates additional funds of $260,000 to $280,000, indicating that working capital needs are material even after opening. Overall, this is not a low-cost franchise format; it requires significant upfront capital and a facility large enough to support the park model.

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• Royalty fee: 6% of Gross Sales
• Ad fee: Currently 2% of Gross Sales
• Local advertising funding requirement: $12,000 during the first month of park operations, then 4% of Gross Sales thereafter
• Technology fee: Approximately $1,480 per month
• Call center program fee: Estimated at $1,000 to $1,400 per month if charged
• Annual convention fee: Up to $1,500 per person, plus travel and living expenses
• Training and assistance fees: Franchisor reserves the right to charge $500 per day, plus travel and living expenses
• Other possible charges: Transfer fees, extension fees, space plan fees, inspection reimbursement, non-compliance fees, maintenance costs, and product purchase/installation costs

The recurring burden is notable because percentage-based fees stack on top of each other. Based on the disclosed percentages, a park may be carrying 6% royalty + 2% ad fund + 4% local advertising, before considering technology, call center, insurance, processing, maintenance, and other operating costs.

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Yes, Item 19 includes historical Gross Sales and EBITDA figures for U.S. parks for the 12-month period ended December 31, 2024.

Model Parks (franchisee-owned subset)

These are parks that had at least 25,000 square feet, 4 or more private party rooms, and were open for the full reporting period.

• Sample size: 31 parks
• Average Gross Sales: $2,929,843
• Median Gross Sales: $2,726,529
• Range: $695,009 to $7,090,723
• Average EBITDA: $887,583
• Median EBITDA: $857,826
• Average EBITDA margin: 30.4%
• Median EBITDA margin: 28.9%

The spread is wide. Gross Sales ranged from under $700,000 to over $7.0 million, which indicates substantial unit-level variability even within a filtered subset of larger parks.

Franchisee-owned parks by size range

Aggregate franchisee-owned parks (97 parks):

• Average Gross Sales: $2,238,859
• Median Gross Sales: $2,184,637
• Range: $314,960 to $7,090,723
• Average EBITDA: $624,793
• Median EBITDA: $595,928

By square footage:

• 16,000–22,500 sq. ft. (22 parks):
  • Average Gross Sales: $1,785,515
  • Median Gross Sales: $1,995,068
  • Range: $314,960 to $3,503,794
  • Average EBITDA: $478,919
  • Median EBITDA: $468,767
• 22,501–25,000 sq. ft. (30 parks):
  • Average Gross Sales: $2,056,800
  • Median Gross Sales: $2,091,207
  • Range: $782,504 to $3,984,928
  • Average EBITDA: $522,631
  • Median EBITDA: $528,660
• 25,001–30,000 sq. ft. (23 parks):
  • Average Gross Sales: $2,533,896
  • Median Gross Sales: $2,433,305
  • Range: $850,587 to $7,090,723
  • Average EBITDA: $776,886
  • Median EBITDA: $684,489
• 30,001–45,000 sq. ft. (22 parks):
  • Average Gross Sales: $2,632,018
  • Median Gross Sales: $2,778,790
  • Range: $695,009 to $4,544,251
  • Average EBITDA: $750,974
  • Median EBITDA: $792,655

Corporate-owned parks

• Sample size: 71 parks
• Average Gross Sales: $3,816,235
• Median Gross Sales: $3,521,670
• Range: $1,268,575 to $9,759,745

A few cautions matter here. First, revenue is not profit. Gross Sales only show top-line sales, and EBITDA is not the same as net income, cash flow, or owner earnings. Second, the Model Parks data is a filtered subset, not the full franchise system. The disclosure states that 33 parks met the Model Park criteria, but 2 were excluded because they did not report full expense and EBITDA information, leaving 31 in that table. Third, the disclosure does not clearly establish whether these figures are audited.

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This is primarily a B2C venue business built around in-person park traffic, parties, food and beverage, merchandise, and related services sold through the park. Revenue appears to combine recurring local customer traffic with event and party-based sales rather than a pure subscription model.

Operationally, this is a large-footprint facility business with meaningful staffing, management, insurance, maintenance, and occupancy demands. The disclosure also indicates a required management structure: the franchisee or a responsible person must personally manage and operate the park, and authority cannot be delegated without prior written consent.

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Advantages

• Item 19 provides both Gross Sales and EBITDA data for franchisee-owned parks, including averages, medians, ranges, and size-based breakdowns.
• The system has a meaningful operating base, with 120 franchised U.S. parks open as of December 31, 2024.
• Size-based performance tables give some indication of how results may differ across park footprints.
• The disclosure includes data for both franchisee-owned and corporate-owned parks, which helps frame the operating model at scale.

Considerations

• Startup cost is very high at $2.69 million to $4.70 million.
• Ongoing fees are layered: 6% royalty, 2% ad fund, and 4% local advertising after opening, plus monthly technology and possible call center fees.
• Revenue and EBITDA vary widely across parks, so unit performance appears far from uniform.
• The territory is non-exclusive, which can limit geographic protection.
• The model appears operationally intensive, with large facilities, staffing needs, and active management requirements.

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This franchise may fit an operator who is comfortable with a large-capital, facility-based business and can provide direct management or active oversight through a responsible person. It may also fit someone prepared for a manager-led operation with substantial local marketing, occupancy, and staffing demands.

It likely does not fit someone seeking a low-cost entry point, a simple service business, passive ownership, or a small-footprint model.

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• The franchise term is 10 years, so the capital commitment is tied to a long operating period.
• The disclosure indicates the franchisor may terminate without cause.
• Owners of a legal entity are required to provide a guarantee of the franchisee’s obligations.
• The choice of forum is tied to the city of the franchisor’s principal place of business, currently Provo, Utah, subject to applicable state law.
• Non-compliance fees can be significant, including $250 per day for certain violations and $2,500 per violation for failure to obtain guest waivers.

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Sky Zone - Standard is a large-format park franchise with disclosed revenue and EBITDA history, but the main tradeoff is clear: higher reported sales potential comes with very high startup costs, a stacked recurring fee load, and a demanding operating model. For a buyer, the key question is less whether parks can generate revenue and more whether they can execute consistently enough to justify the capital and operating complexity.

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