Should I open or buy a DEFY trampoline park franchise in 2027?
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
Is DEFY a good franchise to buy in 2027?
DEFY is a viable option for experienced operators with $1.5M+ liquid capital, but it is not a top-quartile franchise pick in 2027. The trampoline park category has consolidated, unit growth is flat-to-down, and insurance/labor headwinds compress margin. Urban Air, Sky Zone, and Altitude all have more public Item 19 transparency. DEFY makes sense if you can secure a 2nd-gen big-box at $10/sf NNN, your trade area is uncontested, and you intend to owner-operate through Year 3.
How much does a DEFY franchise really cost in 2027?
Per the DEFY 2022 FDD Item 7, total investment ranges from $2,650,700 to $4,207,600, including a $60,000 initial franchise fee, build-out of $850k-$1.65M, equipment of $750k-$1.15M, and working capital of $250k-$400k. Expect 2027 costs to run 8-15% higher due to construction and equipment inflation.
Realistic all-in 2027 budget: $3.0M-$4.7M for a typical 25-35k sq ft park, including a personal liquidity cushion above the FDD floor.
What is DEFY's royalty and ongoing fee structure?
DEFY charges a 6.0% royalty on gross sales paid weekly, plus a 2.0% brand marketing fund contribution, for a combined 8% off-the-top burden on revenue. Operators typically spend an additional 2-3% on local marketing to drive birthday-party bookings and summer camp registrations, bringing the total revenue-linked outlay to ~10-11%.
POS/tech stack fees run $1,800-$3,500/month, and renewal at the 10-year mark carries an approximately $15,000 fee plus updated buildout requirements.
How long until a DEFY franchise breaks even?
Cash-on-cash payback typically lands in months 48-66 for a well-located park hitting $2.4M-$3.2M stabilized revenue at 18-22% EBITDA margin. Year 1 often runs breakeven to slightly cash-positive as the park ramps from $1.4M to $2.0M. Operators in saturated markets or with poor lease terms can stretch to 84+ month payback or never reach breakeven — this is the single biggest reason for distressed FEC resales.
Treat any DEFY purchase as a 7-year minimum hold.
Can I buy an existing DEFY park instead of opening new?
Yes — distressed and motivated-seller DEFY parks trade in the $400k-$1.2M range via business brokers and franchise resale platforms (FranchiseGator, BizBuySell). You inherit existing revenue, staff, and birthday-party pipeline but also deferred maintenance, expired equipment, and potentially a fatigued lease.
Always demand 24 months of P&Ls, the existing FDD, all GL claims history, and a Phase 1 environmental before signing. A resale at 3-4x SDE on a healthy park can outperform a new build by 18-30 months on payback.
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