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Should I open or buy a DEFY trampoline park franchise in 2027?

📖 2,421 words🗓️ Published Jun 19, 2026 · Updated Jun 6, 2026

Direct Answer

Probably not — unless you have $1.5M+ in liquid capital, a 2027 lease in a 150k+ trade area with median household income above $75k, and the stomach for a 5-7 year payback in a category that has consolidated hard since the 2019-2022 trampoline park bubble. DEFY's 2022 FDD shows total investment of $2,650,700 to $4,207,600, a $60,000 initial franchise fee, 6% royalty, and 2% brand marketing fee. Realistic 2027 Year-1 cash flow on a single park is negative to modestly positive ($75k-$250k EBITDA) while ramping; a stabilized Year-3 park doing $2.4M-$3.2M in revenue at 18-22% EBITDA margins can throw off $450k-$700k. Breakeven on cash invested typically lands in months 48-66 — only acceptable if you treat this as a 7-year hold, not a quick flip.

The Real Numbers

DEFY (formerly Rockin' Jump, SkyMania, and several other brands rolled up under the CircusTrix / DEFY umbrella) operates roughly 60+ parks in the U.S. as of 2026. The most recent publicly available FDD is the 2022 filing, which is the basis below; operators should request the 2027 FDD directly from the franchisor and pressure-test every line against their specific market before signing.

Startup Cost Breakdown (Per DEFY 2022 FDD, Item 7)

Line Item	Low	High	Notes
Initial Franchise Fee	$60,000	$60,000	Single-park fee; multi-park deals discounted
Leasehold Improvements / Build-Out	$850,000	$1,650,000	25-40k sq ft industrial space
Trampoline / Attraction Equipment	$750,000	$1,150,000	Court, foam pits, ninja, dodgeball, climbing
Furniture, Fixtures, Tech, POS	$185,000	$295,000	Wristbands, ROLLER POS, party rooms
Architect / Engineering / Permits	$75,000	$135,000	Local AHJ-dependent
Initial Inventory & Supplies	$25,000	$45,000	Socks, F&B, retail
Pre-Opening Marketing	$40,000	$75,000	Grand-opening campaign
Training & Travel	$15,000	$35,000	Two key staff to HQ
Working Capital (3 months)	$250,000	$400,000	Payroll, rent, royalty cushion
Insurance, Deposits, Misc.	$400,700	$362,600	Security deposits, GL/umbrella
Total Initial Investment	$2,650,700	$4,207,600	Per Item 7

Ongoing Fees

Royalty: 6.0% of gross sales, paid weekly
Brand Marketing Fund: 2.0% of gross sales
Local Marketing Minimum: typically 2-3% of gross sales (operator-funded)
Tech / POS Stack Fees: ~$1,800-$3,500/month
Renewal Fee: ~$15,000 at end of 10-year term

Revenue, Margin, Payback

DEFY has not consistently published a full Item 19 financial-performance representation, and the 2022 filing offered limited average-unit-volume disclosure compared to peers like Sky Zone and Urban Air. The triangulated 2027 picture from IBISWorld (Trampoline Parks in the US, NAICS 71399), IFA franchise economic data, and operator-reported numbers across the trampoline-park category:

Metric	Year 1 (ramp)	Year 2	Stabilized Year 3+
Gross Revenue	$1.4M-$2.0M	$2.0M-$2.6M	$2.4M-$3.2M
Royalty + Brand Fee (8%)	$112k-$160k	$160k-$208k	$192k-$256k
Labor (~28-32%)	$420k-$640k	$580k-$830k	$700k-$1.0M
Rent + CAM (~12-15%)	$200k-$280k	$260k-$340k	$300k-$420k
EBITDA Margin	-2% to +8%	10-16%	18-22%
EBITDA $	-$40k to +$160k	$200k-$415k	$450k-$700k
Cash-on-Cash Payback	n/a	n/a	48-66 months

Independent (non-franchised) trampoline parks of similar footprint average $1.8M-$2.5M revenue per IBISWorld 2024 ($750.4M total U.S. industry, +0.73% YoY), which is below pre-pandemic peak and reflects category fatigue. BLS QCEW data (NAICS 71399, Amusement and Recreation Industries) shows wage inflation of 4.8% YoY through 2026, the biggest single-line pressure on margin.

Who Wins With This Business

The operators who actually clear the $500k+ Year-3 cash flow share a tight profile.

Owner-operators with prior multi-unit FEC or fitness experience who run the park 50+ hours/week in Year 1.
Real-estate sophisticates who secure a second-generation big-box (former Bed Bath, Toys R Us, gym) at $8-$14/sq ft NNN — cutting build-out by $300k-$500k.
Trade areas with 150k+ population, 35%+ households with kids under 18, and median HHI > $75k within a 20-minute drive.
Operators willing to layer revenue streams beyond open jump — birthday parties (typically 35-45% of revenue), summer camps, corporate events, fitness classes, F&B, retail.
Multi-park developers who pre-sign 3-pack area developer deals and amortize back-office across locations.
Owners who actively manage labor — keeping labor under 30% of revenue through scheduling tech (ROLLER, 7shifts) and cross-trained teen staff.
Markets without an Urban Air, Sky Zone, or Altitude within 15 miles — direct cannibalization is brutal.
Operators who treat insurance as a strategic input, not an afterthought — securing GL + umbrella before signing the lease.

Who Loses With This Business

The category has chewed up plenty of well-meaning investors. DEFY's own portfolio has seen multiple closures and re-flags in saturated markets since 2021.

Absentee investors expecting a passive 20% IRR — this is an operating business with 40+ teen employees and constant insurance/safety exposure.
Operators in saturated markets (Dallas, Phoenix, Atlanta, Orlando) where 3+ trampoline parks compete in a 10-mile radius.
Anyone underestimating insurance — general liability for trampoline parks runs $80k-$160k/year, with carriers exiting the category after the 2017-2021 injury-claim wave.
First-time entrepreneurs without $500k working capital cushion beyond the FDD's $250k-$400k estimate.
Owners chasing fad attractions (axe throwing, social karaoke) at the expense of core park maintenance.
Operators in cold-weather/seasonal markets without a strong winter birthday-party engine — Q2 (April-June) and Q4 (Nov-Dec) often carry 60% of annual revenue.
Anyone signing a 10-year lease without a 5-year kickout in case the format keeps decaying.
Buyers of existing resale parks without a forensic Item 19 dive — distressed resales at $400k-$900k look cheap until the deferred maintenance bill arrives.

2027 Market Conditions

The trampoline park category is post-bubble in 2027. Five forces matter for any DEFY decision this year.

Category consolidation continues. Sky Zone (CircusTrix-era roll-up), Urban Air (BFK Franchise Group), and Altitude dominate; DEFY sits in the second tier with ~60 parks, and net unit growth is flat-to-down since 2023.
Insurance hardening. Multiple specialty carriers (Hiscox, Markel) tightened terms on trampoline GL in 2025-2026; expect $120k+ GL premiums and mandatory wristband / waiver tech.
Labor cost pressure. BLS wage growth for amusement workers ran 4.8% YoY through 2026; minimum-wage states (CA, NY, WA, MA) now push teen labor above $17/hr, compressing margin 200-300 bps.
Competition from adjacent FEC formats. Urban Air's adventure-park model, Sky Zone's Warrior Course, DEFY's stunt-tower, plus Topgolf, Puttshack, Activate, BoxBar — the family-entertainment dollar is being sliced thinner.
Real estate tailwind. Retail vacancies in Class-B power centers remain elevated; landlords are offering 6-12 months free rent + $35-$50/sq ft TI allowance for 25k+ sq ft tenants — meaningful for trampoline park economics.
AI-driven yield management. ROLLER, Peek, and CenterEdge now offer dynamic pricing that can lift revenue per visitor 8-14% when implemented well.
Demographic shift. The U.S. under-18 population peaked in 2020 per Census; long-term demand for kid-centric attractions is a slow declining curve.

The 90-Day Decision Tree

Days 1-10: Pull the DEFY 2027 FDD. Email franchise@defy.com, request the current Item 7, Item 19, and Item 20 (system size + closures). Cross-reference closure rate against 2024 and 2025 filings — three years of net unit growth tells you the truth.
Days 11-20: Validate the trade area. Run SitesUSA or Buxton on your candidate location — confirm 150k+ population, 35%+ households with kids, $75k+ median HHI, and no competing trampoline park within 15 miles.
Days 21-30: Interview 8-12 existing franchisees. FDD Item 20 lists every operator. Ask: actual Year-1 revenue, current EBITDA margin, what they'd change. Three-park veterans tell the truth; first-year operators are still optimistic.
Days 31-40: Get three insurance quotes. CBIZ, Hub International, Marsh McLennan all underwrite FEC. A $150k+ GL premium kills the model — confirm before lease.
Days 41-55: Lock the real estate. Target second-generation big-box, 25k-35k sq ft, $8-$14 NNN, 6+ months free rent, $35+/sf TI allowance. Walk if the landlord won't fund TI — your CapEx blows up.
Days 56-65: Build the pro forma. Use real franchisee numbers, not DEFY's projections. Stress-test at -20% revenue and +15% labor — if EBITDA goes negative, walk.
Days 66-75: Line up financing. SBA 7(a) up to $5M through Live Oak, Celtic Bank, or Newtek; expect 10-25% equity down, 10-yr amortization, prime + 2.75%.
Days 76-85: Legal review. Franchise attorney (e.g., Goldstein Law, Mohajerian APC) reviews the FDD and lease. Negotiate territorial protection if DEFY offers it.
Days 86-90: Sign or walk. If three or more red flags surfaced — close rate trending up, GL above $150k, no TI allowance, no franchisee enthusiasm — walk. No discovery-day energy should override the math.

Alternative Plays

If the DEFY economics don't pencil for your situation, the same capital pool buys options with materially different risk profiles.

Urban Air Adventure Park — $1.6M-$3.5M total investment, broader attraction mix (warrior course, sky rider, ropes), stronger system-level unit growth (200+ parks).
Sky Zone — $1.5M-$4.5M total investment, category leader by unit count (~270 parks), highest brand recognition.
Altitude Trampoline Park — $1.4M-$2.8M total, leaner build, 5% royalty + 1.5% marketing.
Independent FEC — build your own at $1.8M-$3.2M, keep the 8% royalty/brand fee, accept zero brand pull.
Crunch Fitness or Planet Fitness franchise — $2.0M-$3.5M total, 20-25% EBITDA at maturity, far less injury liability.
Chicken Salad Chick or Tropical Smoothie — $650k-$1.2M total, 15-20% EBITDA, smaller swing but faster payback.
Buy an existing distressed trampoline park — $400k-$900k via business broker, requires deep operational fix-up but cuts CapEx 60%.
Multi-unit DEFY area developer — if you can commit to 3+ parks over 5 years, you get discounted franchise fees and protected territory, which materially improves IRR.

FAQ

What is the minimum liquid capital needed to open a DEFY franchise in 2027? You should expect to have at least $1.5 million in liquid capital, though some operators may need $2 million or more depending on lease terms and local build-out costs. The total investment range from the 2022 FDD is $2.65 million to $4.2 million, and those figures have likely increased with inflation.

How long does it take to break even on a DEFY trampoline park? Breakeven on cash invested typically falls between months 48 and 66, meaning four to five and a half years. This assumes a stabilized Year-3 park doing $2.4 million to $3.2 million in revenue with 18-22% EBITDA margins.

What are the ongoing royalty and marketing fees for DEFY franchisees? The royalty is 6% of gross revenue, and the brand marketing fee is 2%. These are standard for the category and haven't changed in recent FDDs, though marketing fund contributions may increase slightly over time.

Can I buy an existing DEFY park instead of building from scratch? Yes, but resales are rare — most existing owners who survived the 2019-2022 bubble are holding long-term. If one becomes available, expect to pay 3-5x stabilized EBITDA, which could be $1.5 million to $3.5 million for a well-performing park.

What trade area population and income does DEFY require for a new location? You'll need a trade area of at least 150,000 people with a median household income above $75,000. Many successful parks serve areas with 200,000+ people and median incomes above $85,000 to support premium pricing.

Is a DEFY franchise a good investment for someone wanting to sell in 3-5 years? No — the 5-7 year payback makes a quick flip unrealistic. You'd likely need to hold for at least 7 years to see meaningful returns, and the resale market for trampoline parks is thin, with most buyers being multi-unit operators looking for distressed deals.

Bottom Line

DEFY is a legitimate trampoline park franchise with 60+ U.S. parks and transparent FDD economics, but it is a category-fatigue play in 2027, not a growth story. Total investment of $2.65M-$4.2M, 6% royalty + 2% marketing, $2.4M-$3.2M stabilized revenue, 18-22% EBITDA margin, and 48-66 month payback define the realistic envelope. Buy only if you have $1.5M+ liquid, an owner-operator mindset, a 2nd-gen big-box lease at $8-$14 NNN, an uncontested trade area, and the discipline to walk if insurance quotes over $150k. If any one of those gates fails, Urban Air, Sky Zone, Altitude, an independent FEC, or a QSR multi-unit will likely outperform on risk-adjusted IRR. Treat a DEFY decision as a 7-year operating commitment, not a financial product.

Sources

DEFY Trampoline Parks, Franchise Opportunities, https://defy.com/franchise-opportunities/
DEFY 2022 Franchise Disclosure Document, FDD Exchange, https://fddexchange.com/view-fdd-docs/defy-2022-fdd-franchise-information-costs-and-fees/
IBISWorld, Trampoline Parks in the US Industry Report (NAICS 71399), 2024-2026, https://www.ibisworld.com/united-states/market-research-reports/trampoline-parks-industry/
IBISWorld, Trampoline Parks Market Size Data 2010-2030, https://www.ibisworld.com/industry-statistics/market-size/trampoline-parks-united-states/
International Franchise Association (IFA), 2027 Franchise Economic Outlook, https://www.franchise.org/
U.S. Bureau of Labor Statistics, QCEW NAICS 71399 Amusement and Recreation Industries, https://www.bls.gov/cew/
International Association of Trampoline Parks (IATP), Industry Safety and Insurance Benchmarks, https://iatpworld.com/
Urban Air Franchise Investment Disclosure, https://www.urbanairfranchise.com/investment/
Altitude Trampoline Park Franchise Deep Dive (1851 Franchise), https://1851franchise.com/franchise-deep-dive-altitude-trampoline-park-franchise-costs-fees-profit-and-data-2721750
Sharpsheets, Big Air Trampoline Park Franchise FDD, Profits & Costs (2025), https://sharpsheets.io/blog/big-air-trampoline-park-franchise-fdd-profits-costs/
VettedBiz, How to Start a Trampoline Park Franchise: Sky Zone vs. Urban Air, https://www.vettedbiz.com/resources/trampoline-park-franchise
ROLLER Software, Trampoline Park Franchise Operating Benchmarks, https://www.roller.software/blog/trampoline-park-franchise

flowchart TD A[2027 DEFY Franchise Decision] --> B{Liquid Capital at least $1.5M?} B -- No --> X[Stop. Wait or pick a lower-CapEx FEC.] B -- Yes --> C{Trade area 150k+ pop, HHI over $75k?} C -- No --> X C -- Yes --> D{Existing trampoline park within 15 mi?} D -- Yes --> Y[High cannibalization risk - reconsider] D -- No --> E{2nd-gen big-box at $8-14/sf NNN?} E -- No --> F[Build-out blows budget - reconsider] E -- Yes --> G{Owner-operator or A+ GM hired?} G -- No --> F G -- Yes --> H{GL Insurance quoted under $150k?} H -- No --> Z[Insurance gates economics - re-shop] H -- Yes --> I[Sign FDD - target 48-66 mo payback] I --> J[Year 1: ramp to $1.4M-$2.0M] J --> K[Year 3+: stabilize $2.4M-$3.2M, 18-22% EBITDA]

flowchart LR A[Capital: $1.5M-$4.2M] --> B[DEFY Single Park] A --> C[Urban Air / Sky Zone] A --> D[Altitude Trampoline] A --> E[Independent FEC] A --> F[Crunch / Planet Fitness] A --> G[QSR Multi-Unit] B --> H[5-7 yr payback / 18-22% EBITDA at maturity] C --> I[4-6 yr payback / 20-24% EBITDA] D --> J[4-6 yr payback / 19-23% EBITDA] E --> K[3-5 yr payback / 22-28% EBITDA, no brand pull] F --> L[3-4 yr payback / 20-25% EBITDA, lower liability] G --> M[2-3 yr payback / 15-20% EBITDA]

Related on PULSE

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Download:

![DEFY trampoline park logo](https://defy.com/wp-content/uploads/2021/12/gift-cards.png)

## Direct Answer

**Probably not — unless** you have **$1.5M+ in liquid capital**, a **2027 lease in a 150k+ trade area** with **median household income above $75k**, and the stomach for a **5-7 year payback** in a category that has consolidated hard since the 2019-2022 trampoline park bubble. **DEFY's 2022 FDD shows total investment of $2,650,700 to $4,207,600**, a **$60,000 initial franchise fee**, **6% royalty**, and **2% brand marketing fee**. Realistic 2027 Year-1 cash flow on a single park is **negative to modestly positive ($75k-$250k EBITDA)** while ramping; a stabilized Year-3 park doing **$2.4M-$3.2M in revenue** at **18-22% EBITDA margins** can throw off **$450k-$700k**. **Breakeven on cash invested typically lands in months 48-66** — only acceptable if you treat this as a 7-year hold, not a quick flip.

## The Real Numbers

![Should I open or buy a DEFY trampoline park franchise in 2027? — The Real Numbers](https://image.pollinations.ai/prompt/high%20quality%20editorial%20franchise%20storefront%20photograph%20illustrating%20The%20Real%20Numbers%20Should%20I%20open%20or%20buy%20a%20DEFY%20trampoline%20park%20franchise%20in%202027%3F%2C%20realistic%20magazine%20style%2C%20warm%20light%2C%20no%20text%2C%20no%20watermark?width=1200&height=675&nologo=true&model=flux&seed=35403)


DEFY (formerly Rockin' Jump, SkyMania, and several other brands rolled up under the **CircusTrix / DEFY** umbrella) operates roughly **60+ parks** in the U.S. as of 2026. **The most recent publicly available FDD is the 2022 filing**, which is the basis below; **operators should request the 2027 FDD directly from the franchisor** and pressure-test every line against their specific market before signing.

### Startup Cost Breakdown (Per DEFY 2022 FDD, Item 7)

![Should I open or buy a DEFY trampoline park franchise in 2027? — Startup Cost Breakdown (Per DEFY 2022 FDD, Item 7)](https://image.pollinations.ai/prompt/high%20quality%20editorial%20franchise%20storefront%20photograph%20illustrating%20Startup%20Cost%20Breakdown%20(Per%20DEFY%202022%20FDD%2C%20Item%207)%20Should%20I%20open%20or%20buy%20a%20DEFY%20t%2C%20realistic%20magazine%20style%2C%20warm%20light%2C%20no%20text%2C%20no%20watermark?width=1200&height=675&nologo=true&model=flux&seed=9227)


| Line Item | Low | High | Notes |
|---|---|---|---|
| **Initial Franchise Fee** | $60,000 | $60,000 | Single-park fee; multi-park deals discounted |
| **Leasehold Improvements / Build-Out** | $850,000 | $1,650,000 | 25-40k sq ft industrial space |
| **Trampoline / Attraction Equipment** | $750,000 | $1,150,000 | Court, foam pits, ninja, dodgeball, climbing |
| **Furniture, Fixtures, Tech, POS** | $185,000 | $295,000 | Wristbands, ROLLER POS, party rooms |
| **Architect / Engineering / Permits** | $75,000 | $135,000 | Local AHJ-dependent |
| **Initial Inventory & Supplies** | $25,000 | $45,000 | Socks, F&B, retail |
| **Pre-Opening Marketing** | $40,000 | $75,000 | Grand-opening campaign |
| **Training & Travel** | $15,000 | $35,000 | Two key staff to HQ |
| **Working Capital (3 months)** | $250,000 | $400,000 | Payroll, rent, royalty cushion |
| **Insurance, Deposits, Misc.** | $400,700 | $362,600 | Security deposits, GL/umbrella |
| **Total Initial Investment** | **$2,650,700** | **$4,207,600** | Per Item 7 |

### Ongoing Fees

![Should I open or buy a DEFY trampoline park franchise in 2027? — Ongoing Fees](https://image.pollinations.ai/prompt/high%20quality%20editorial%20franchise%20storefront%20photograph%20illustrating%20Ongoing%20Fees%20Should%20I%20open%20or%20buy%20a%20DEFY%20trampoline%20park%20franchise%20in%202027%3F%2C%20realistic%20magazine%20style%2C%20warm%20light%2C%20no%20text%2C%20no%20watermark?width=1200&height=675&nologo=true&model=flux&seed=88358)


- **Royalty:** **6.0% of gross sales**, paid weekly
- **Brand Marketing Fund:** **2.0% of gross sales**
- **Local Marketing Minimum:** typically **2-3% of gross sales** (operator-funded)
- **Tech / POS Stack Fees:** ~**$1,800-$3,500/month**
- **Renewal Fee:** ~**$15,000** at end of 10-year term

### Revenue, Margin, Payback

DEFY has not consistently published a full Item 19 financial-performance representation, and the 2022 filing offered **limited average-unit-volume disclosure** compared to peers like Sky Zone and Urban Air. The triangulated 2027 picture from **IBISWorld (Trampoline Parks in the US, NAICS 71399)**, **IFA franchise economic data**, and operator-reported numbers across the trampoline-park category:

| Metric | Year 1 (ramp) | Year 2 | Stabilized Year 3+ |
|---|---|---|---|
| **Gross Revenue** | $1.4M-$2.0M | $2.0M-$2.6M | $2.4M-$3.2M |
| **Royalty + Brand Fee (8%)** | $112k-$160k | $160k-$208k | $192k-$256k |
| **Labor (~28-32%)** | $420k-$640k | $580k-$830k | $700k-$1.0M |
| **Rent + CAM (~12-15%)** | $200k-$280k | $260k-$340k | $300k-$420k |
| **EBITDA Margin** | -2% to +8% | 10-16% | 18-22% |
| **EBITDA $** | -$40k to +$160k | $200k-$415k | $450k-$700k |
| **Cash-on-Cash Payback** | n/a | n/a | **48-66 months** |

Independent (non-franchised) **trampoline parks of similar footprint average $1.8M-$2.5M revenue** per **IBISWorld 2024** ($750.4M total U.S. industry, +0.73% YoY), which is **below pre-pandemic peak** and reflects category fatigue. **BLS QCEW data (NAICS 71399, Amusement and Recreation Industries)** shows wage inflation of **4.8% YoY through 2026**, the biggest single-line pressure on margin.

## Who Wins With This Business

The operators who actually clear the **$500k+ Year-3 cash flow** share a tight profile.

- **Owner-operators with prior multi-unit FEC or fitness experience** who run the park 50+ hours/week in Year 1.
- **Real-estate sophisticates** who secure a **second-generation big-box** (former Bed Bath, Toys R Us, gym) at **$8-$14/sq ft NNN** — cutting build-out by $300k-$500k.
- **Trade areas with 150k+ population**, **35%+ households with kids under 18**, and **median HHI > $75k** within a 20-minute drive.
- **Operators willing to layer revenue streams** beyond open jump — **birthday parties (typically 35-45% of revenue)**, **summer camps, corporate events, fitness classes, F&B, retail**.
- **Multi-park developers** who pre-sign **3-pack area developer deals** and amortize back-office across locations.
- **Owners who actively manage labor** — keeping **labor under 30% of revenue** through scheduling tech (ROLLER, 7shifts) and cross-trained teen staff.
- **Markets without an Urban Air, Sky Zone, or Altitude within 15 miles** — direct cannibalization is brutal.
- **Operators who treat insurance as a strategic input**, not an afterthought — securing GL + umbrella before signing the lease.

## Who Loses With This Business

The category has chewed up plenty of well-meaning investors. **DEFY's own portfolio has seen multiple closures and re-flags** in saturated markets since 2021.

- **Absentee investors** expecting a **passive 20% IRR** — this is an operating business with 40+ teen employees and constant insurance/safety exposure.
- **Operators in saturated markets** (Dallas, Phoenix, Atlanta, Orlando) where **3+ trampoline parks compete in a 10-mile radius**.
- **Anyone underestimating insurance** — **general liability for trampoline parks runs $80k-$160k/year**, with carriers exiting the category after the 2017-2021 injury-claim wave.
- **First-time entrepreneurs without $500k working capital cushion** beyond the FDD's $250k-$400k estimate.
- **Owners chasing fad attractions** (axe throwing, social karaoke) at the expense of core park maintenance.
- **Operators in cold-weather/seasonal markets** without a strong **winter birthday-party engine** — Q2 (April-June) and Q4 (Nov-Dec) often carry 60% of annual revenue.
- **Anyone signing a 10-year lease without a 5-year kickout** in case the format keeps decaying.
- **Buyers of existing resale parks** without a forensic Item 19 dive — **distressed resales at $400k-$900k** look cheap until the deferred maintenance bill arrives.

## 2027 Market Conditions

The trampoline park category is **post-bubble** in 2027. Five forces matter for any DEFY decision this year.

- **Category consolidation continues.** Sky Zone (CircusTrix-era roll-up), Urban Air (BFK Franchise Group), and Altitude dominate; **DEFY sits in the second tier with ~60 parks**, and **net unit growth is flat-to-down** since 2023.
- **Insurance hardening.** Multiple specialty carriers (Hiscox, Markel) tightened terms on trampoline GL in 2025-2026; expect **$120k+ GL premiums** and **mandatory wristband / waiver tech**.
- **Labor cost pressure.** **BLS wage growth for amusement workers ran 4.8% YoY through 2026**; minimum-wage states (CA, NY, WA, MA) now push teen labor above $17/hr, compressing margin 200-300 bps.
- **Competition from adjacent FEC formats.** **Urban Air's adventure-park model**, **Sky Zone's Warrior Course**, **DEFY's stunt-tower**, plus **Topgolf, Puttshack, Activate, BoxBar** — the family-entertainment dollar is being sliced thinner.
- **Real estate tailwind.** Retail vacancies in Class-B power centers remain elevated; **landlords are offering 6-12 months free rent + $35-$50/sq ft TI allowance** for 25k+ sq ft tenants — meaningful for trampoline park economics.
- **AI-driven yield management.** ROLLER, Peek, and CenterEdge now offer **dynamic pricing** that can lift revenue per visitor **8-14%** when implemented well.
- **Demographic shift.** The **U.S. under-18 population peaked in 2020** per Census; long-term demand for kid-centric attractions is a slow declining curve.

```mermaid
flowchart TD
    A[2027 DEFY Franchise Decision] --> B{Liquid Capital at least $1.5M?}
    B -- No --> X[Stop. Wait or pick a lower-CapEx FEC.]
    B -- Yes --> C{Trade area 150k+ pop, HHI over $75k?}
    C -- No --> X
    C -- Yes --> D{Existing trampoline park within 15 mi?}
    D -- Yes --> Y[High cannibalization risk - reconsider]
    D -- No --> E{2nd-gen big-box at $8-14/sf NNN?}
    E -- No --> F[Build-out blows budget - reconsider]
    E -- Yes --> G{Owner-operator or A+ GM hired?}
    G -- No --> F
    G -- Yes --> H{GL Insurance quoted under $150k?}
    H -- No --> Z[Insurance gates economics - re-shop]
    H -- Yes --> I[Sign FDD - target 48-66 mo payback]
    I --> J[Year 1: ramp to $1.4M-$2.0M]
    J --> K[Year 3+: stabilize $2.4M-$3.2M, 18-22% EBITDA]
```

## The 90-Day Decision Tree

1. **Days 1-10: Pull the DEFY 2027 FDD.** Email franchise@defy.com, request the current Item 7, Item 19, and Item 20 (system size + closures). **Cross-reference closure rate against 2024 and 2025 filings** — three years of net unit growth tells you the truth.
2. **Days 11-20: Validate the trade area.** Run **SitesUSA or Buxton** on your candidate location — confirm **150k+ population**, **35%+ households with kids**, **$75k+ median HHI**, and **no competing trampoline park within 15 miles**.
3. **Days 21-30: Interview 8-12 existing franchisees.** FDD Item 20 lists every operator. **Ask: actual Year-1 revenue, current EBITDA margin, what they'd change**. Three-park veterans tell the truth; first-year operators are still optimistic.
4. **Days 31-40: Get three insurance quotes.** **CBIZ, Hub International, Marsh McLennan** all underwrite FEC. **A $150k+ GL premium kills the model** — confirm before lease.
5. **Days 41-55: Lock the real estate.** Target **second-generation big-box, 25k-35k sq ft, $8-$14 NNN, 6+ months free rent, $35+/sf TI allowance**. **Walk if the landlord won't fund TI** — your CapEx blows up.
6. **Days 56-65: Build the pro forma.** Use real franchisee numbers, not DEFY's projections. **Stress-test at -20% revenue and +15% labor** — if EBITDA goes negative, walk.
7. **Days 66-75: Line up financing.** **SBA 7(a) up to $5M** through Live Oak, Celtic Bank, or Newtek; expect **10-25% equity down, 10-yr amortization, prime + 2.75%**.
8. **Days 76-85: Legal review.** Franchise attorney (e.g., **Goldstein Law, Mohajerian APC**) reviews the FDD and lease. **Negotiate territorial protection** if DEFY offers it.
9. **Days 86-90: Sign or walk.** **If three or more red flags surfaced — close rate trending up, GL above $150k, no TI allowance, no franchisee enthusiasm — walk.** No discovery-day energy should override the math.

## Alternative Plays

If the DEFY economics don't pencil for your situation, the same capital pool buys options with materially different risk profiles.

- **Urban Air Adventure Park** — **$1.6M-$3.5M total investment**, broader attraction mix (warrior course, sky rider, ropes), **stronger system-level unit growth** (200+ parks).
- **Sky Zone** — **$1.5M-$4.5M total investment**, category leader by unit count (~270 parks), highest brand recognition.
- **Altitude Trampoline Park** — **$1.4M-$2.8M total**, leaner build, **5% royalty + 1.5% marketing**.
- **Independent FEC** — **build your own** at $1.8M-$3.2M, keep the 8% royalty/brand fee, accept zero brand pull.
- **Crunch Fitness or Planet Fitness franchise** — **$2.0M-$3.5M total**, **20-25% EBITDA at maturity**, far less injury liability.
- **Chicken Salad Chick or Tropical Smoothie** — **$650k-$1.2M total**, **15-20% EBITDA**, smaller swing but faster payback.
- **Buy an existing distressed trampoline park** — **$400k-$900k via business broker**, requires deep operational fix-up but cuts CapEx 60%.
- **Multi-unit DEFY area developer** — if you can commit to **3+ parks over 5 years**, you get **discounted franchise fees and protected territory**, which materially improves IRR.

```mermaid
flowchart LR
    A[Capital: $1.5M-$4.2M] --> B[DEFY Single Park]
    A --> C[Urban Air / Sky Zone]
    A --> D[Altitude Trampoline]
    A --> E[Independent FEC]
    A --> F[Crunch / Planet Fitness]
    A --> G[QSR Multi-Unit]
    B --> H[5-7 yr payback / 18-22% EBITDA at maturity]
    C --> I[4-6 yr payback / 20-24% EBITDA]
    D --> J[4-6 yr payback / 19-23% EBITDA]
    E --> K[3-5 yr payback / 22-28% EBITDA, no brand pull]
    F --> L[3-4 yr payback / 20-25% EBITDA, lower liability]
    G --> M[2-3 yr payback / 15-20% EBITDA]
```

## FAQ

**What is the minimum liquid capital needed to open a DEFY franchise in 2027?**  
You should expect to have at least $1.5 million in liquid capital, though some operators may need $2 million or more depending on lease terms and local build-out costs. The total investment range from the 2022 FDD is $2.65 million to $4.2 million, and those figures have likely increased with inflation.

**How long does it take to break even on a DEFY trampoline park?**  
Breakeven on cash invested typically falls between months 48 and 66, meaning four to five and a half years. This assumes a stabilized Year-3 park doing $2.4 million to $3.2 million in revenue with 18-22% EBITDA margins.

**What are the ongoing royalty and marketing fees for DEFY franchisees?**  
The royalty is 6% of gross revenue, and the brand marketing fee is 2%. These are standard for the category and haven't changed in recent FDDs, though marketing fund contributions may increase slightly over time.

**Can I buy an existing DEFY park instead of building from scratch?**  
Yes, but resales are rare — most existing owners who survived the 2019-2022 bubble are holding long-term. If one becomes available, expect to pay 3-5x stabilized EBITDA, which could be $1.5 million to $3.5 million for a well-performing park.

**What trade area population and income does DEFY require for a new location?**  
You'll need a trade area of at least 150,000 people with a median household income above $75,000. Many successful parks serve areas with 200,000+ people and median incomes above $85,000 to support premium pricing.

**Is a DEFY franchise a good investment for someone wanting to sell in 3-5 years?**  
No — the 5-7 year payback makes a quick flip unrealistic. You'd likely need to hold for at least 7 years to see meaningful returns, and the resale market for trampoline parks is thin, with most buyers being multi-unit operators looking for distressed deals.

## Bottom Line

DEFY is a **legitimate trampoline park franchise** with **60+ U.S. parks** and **transparent FDD economics**, but it is **a category-fatigue play in 2027**, not a growth story. **Total investment of $2.65M-$4.2M, 6% royalty + 2% marketing, $2.4M-$3.2M stabilized revenue, 18-22% EBITDA margin, and 48-66 month payback** define the realistic envelope. **Buy only if you have $1.5M+ liquid, an owner-operator mindset, a 2nd-gen big-box lease at $8-$14 NNN, an uncontested trade area, and the discipline to walk if insurance quotes over $150k**. If any one of those gates fails, **Urban Air, Sky Zone, Altitude, an independent FEC, or a QSR multi-unit will likely outperform on risk-adjusted IRR**. **Treat a DEFY decision as a 7-year operating commitment, not a financial product.**

## Sources

- DEFY Trampoline Parks, Franchise Opportunities, https://defy.com/franchise-opportunities/
- DEFY 2022 Franchise Disclosure Document, FDD Exchange, https://fddexchange.com/view-fdd-docs/defy-2022-fdd-franchise-information-costs-and-fees/
- IBISWorld, Trampoline Parks in the US Industry Report (NAICS 71399), 2024-2026, https://www.ibisworld.com/united-states/market-research-reports/trampoline-parks-industry/
- IBISWorld, Trampoline Parks Market Size Data 2010-2030, https://www.ibisworld.com/industry-statistics/market-size/trampoline-parks-united-states/
- International Franchise Association (IFA), 2027 Franchise Economic Outlook, https://www.franchise.org/
- U.S. Bureau of Labor Statistics, QCEW NAICS 71399 Amusement and Recreation Industries, https://www.bls.gov/cew/
- International Association of Trampoline Parks (IATP), Industry Safety and Insurance Benchmarks, https://iatpworld.com/
- Urban Air Franchise Investment Disclosure, https://www.urbanairfranchise.com/investment/
- Altitude Trampoline Park Franchise Deep Dive (1851 Franchise), https://1851franchise.com/franchise-deep-dive-altitude-trampoline-park-franchise-costs-fees-profit-and-data-2721750
- Sharpsheets, Big Air Trampoline Park Franchise FDD, Profits & Costs (2025), https://sharpsheets.io/blog/big-air-trampoline-park-franchise-fdd-profits-costs/
- VettedBiz, How to Start a Trampoline Park Franchise: Sky Zone vs. Urban Air, https://www.vettedbiz.com/resources/trampoline-park-franchise
- ROLLER Software, Trampoline Park Franchise Operating Benchmarks, https://www.roller.software/blog/trampoline-park-franchise

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