What is the estimated range for Utility Deposits for a Big Air Trampoline Park?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
- (15) Additional Funds. This is for budgeting purposes only to account for unanticipated expenses. This amount includes estimated operating expenses you should expect to incur during the first three months of operations, not including any revenue generated by your Big Air Trampoline Business. It includes Working Capital, Royalties, National Marketing and Promotions Fees, POS licensing fees Technology Support Fees, advertising, payroll costs, deposits, fees for city, state and local business licenses, business entity organization expenses, other prepaid expenses, accounting and professional fees, real estate leasing costs that may be payable during the first three months of operation, and other operational expenses. These figures do not include any taxes or other permitting or licensing fees that you may pay. You should check with your local and state governmental agencies for any taxes and other permitting and licensing fees that may be assessed. In estimating the amount of additional funds, we relied on our management's over 30 years of experience in constructing and operating activity parks and three years of experience in constructing and operating a Big Air Trampoline Business.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–22)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the estimated range for utility deposits for a Big Air Trampoline Park is not explicitly detailed. However, Item 7 does mention deposits in the context of real estate leasing costs. Specifically, it states that the "Additional Funds" section includes "deposits" as part of the estimated operating expenses expected during the first three months of operations. These deposits are related to expenses such as city, state, and local business licenses. Utility deposits are not explicitly mentioned.
Given that the FDD does not provide a specific range for utility deposits, prospective franchisees should recognize that this cost is folded into a broader category of 'Additional Funds' for initial operating expenses. This means franchisees need to budget for these deposits as part of their overall financial planning. The 'Additional Funds' are meant to cover unanticipated expenses and initial operating costs during the first three months, but the FDD does not specify how much of this should be allocated to utility deposits.
Therefore, it is crucial for potential Big Air Trampoline Park franchisees to conduct thorough due diligence in their target market to determine the typical utility deposit amounts. They should contact local utility companies to get accurate estimates for setting up services like electricity, gas, water, and internet. Understanding these costs upfront will help in creating a more realistic financial projection and avoiding potential cash flow issues during the initial months of operation. Franchisees should also discuss typical utility deposit costs with existing Big Air Trampoline Park franchisees to gather real-world insights.