Slick City Franchise in 2024: Costs, Fee & FDD
Looking for an exciting investment opportunity in the family entertainment sector? Slick City Action Parks franchise combines innovation, proprietary slides, and expert support, offering a unique adventure park experience. Discover the costs, fees, and potential returns today!
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Slick City Action Parks, founded in 2021 by Bron Launsby and Gary Schmit, is making waves in the family entertainment industry. Launsby, a seasoned entrepreneur with deep roots in the adventure and trampoline park space, teamed up with Schmit, the inventor of the Slick Slide, to create a unique, adrenaline-packed experience for families. Their partnership brought a fresh concept to the market, one that’s rooted in innovation and fun, setting Slick City apart from other entertainment options. With the backing of experts from big names like Sky Zone and Universal Studios, they’re set to lead the charge in adventure parks.
The core product of Slick City centers around their proprietary slides, designed to offer an exhilarating, gravity-defying experience. These slides are the backbone of the brand, attracting thrill-seekers and families alike. Slick City’s parks cater primarily to families and groups looking for active fun, making them a hit for kids’ parties, family outings, and group events. Beyond the main attractions, Slick City offers a variety of additional services like event hosting, concessions, and branded merchandise.
Slick City has been rapidly expanding since the opening of their first parks in Denver, CO; St. Louis, MO; Katy, TX; and Peoria, AZ. With a focus on bringing excitement to communities across the U.S., the franchise has shown impressive growth. They are also tapping into their innovative spirit with over 34 patents filed or granted for their unique slides and technology. As they continue to grow, Slick City is becoming a staple in the family entertainment industry.
For franchisees, Slick City offers comprehensive support, from site selection to ongoing operational guidance. Their training programs ensure that franchise owners are equipped to manage every aspect of the business, from safety protocols to guest satisfaction. The franchise’s dedication to innovation and constant improvement also means franchisees benefit from fresh concepts, new technology, and a brand that’s always evolving. Slick City’s combination of a strong support system and unique, high-energy entertainment offerings makes it a promising opportunity for investors.
Slick City Franchise Insights
- Slick City filed or was granted 34 patents for their proprietary slides and technology, highlighting their commitment to innovation and exclusive park experiences.
- Slick City parks cater to a wide market, primarily families and groups, offering a scalable business model that thrives on community engagement and repeat visits.
- Slick City began franchising in 2023, which means that all existing locations have been corporately owned and operated, ensuring a tested model before opening up to franchisees.
- This recent move into franchising offers new investors the chance to join a business backed by strong corporate management and a proven track record from its initial locations.
Slick City Franchise Key indicators
Growth YOY (%)
0%
vs industry 3%
Total U.S. Units
3
How much does it cost to open a Slick City franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Slick City franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Slick City franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Slick City below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $60,000 | $60,000 |
| Lease Security Deposit and up to one month of rent | $20,900 | $145,900 |
| Utilities | $0 | $20,000 |
| Leasehold Improvements | $560,000 | $1,350,000 |
| Market Introduction Plan | $20,000 | $20,000 |
| Core Attractions Package | $624,800 | $988,400 |
| Affiliate Equipment and Supplies | $70,700 | $108,500 |
| Additional Equipment and Supplies | $45,000 | $90,000 |
| Computer Systems | $13,300 | $14,300 |
| Insurance (3 months) | $34,000 | $56,250 |
| Signage | $20,000 | $61,280 |
| Office Expenses | $1,000 | $3,000 |
| Pre-Opening Salaries | $17,000 | $56,000 |
| Pre-Opening Socks Inventory | $8,000 | $16,000 |
| Pre-Opening Food and Beverage Inventory | $4,250 | $6,250 |
| Licenses and Permits | $2,500 | $20,000 |
| Dues and Subscriptions | $1,200 | $2,400 |
| Professional Fees | $2,500 | $7,500 |
| Travel, Lodging, and Meals for Initial Training | $6,000 | $8,000 |
| Additional Funds (for first 3 months) | $37,500 | $198,300 |
| Total Estimated Initial Investment | $1,548,650 | $3,232,080 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
When considering a franchise like Slick City, it’s important to understand the financial requirements to get started. Although the exact figures for Slick City’s capital requirements may not be publicly available, we can provide estimates based on industry standards for similar family entertainment franchises.
- Required Capital Investment The total investment for Slick City ranges from $1.55 million to $3.23 million, which typically includes costs such as construction, equipment, initial inventory, and marketing. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement For a family entertainment franchise, franchisees typically need $500,000 to $750,000 in liquid assets. This ensures the owner has enough cash reserves to cover day-to-day expenses and initial operating costs.
- Net Worth Requirement Industry standards suggest a minimum net worth of $1.5 million to $3 million to open a similar type of franchise. This figure factors in the ability to secure financing, manage overhead, and sustain the business in the early stages.
How much does a Slick City franchise owner make?
Calculating the salary of a Slick City franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Slick City franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Slick City Revenue & Gross Sales
The median gross sales for Slick City are not publicly available at the moment. However, we can discuss the overall performance of family entertainment franchises based on industry trends. Typically, well-established adventure parks with innovative attractions like Slick City can generate strong revenue due to their appeal to families, groups, and event bookings.
Performance can be influenced by factors such as location, local market demand, the size of the park, and operational efficiency. Slick City’s unique attractions, like its proprietary slides and focus on innovation, suggest a strong potential for high customer turnout and repeat business, which are critical for driving sales in this type of entertainment franchise.
Which key factors impact the average revenue performance of Slick City franchisees?
The performance of U.S. franchisee median gross sales for Slick City is likely influenced by several key factors. First, the franchise’s unique attractions, like proprietary slides and innovative park designs, draw consistent customer interest, making it a popular destination for families and groups. Location is also crucial, as parks situated in high-traffic areas with strong demographic appeal tend to see higher foot traffic and sales. Additionally, the brand’s ability to offer repeat experiences through birthday parties, events, and seasonal promotions boosts revenue. Strong corporate support, including marketing and operational guidance, ensures franchisees are well-positioned to succeed, contributing to steady sales growth.
Slick City Franchise Operational Costs
When opening a Slick City franchise, there are several key operational costs you’ll need to keep in mind that will directly impact the day-to-day running of the business. These costs are essential for maintaining a high-quality guest experience and keeping the park in top condition.
- Staffing and Payroll Given the need for a well-trained team to ensure safety and manage customer interactions, employee wages and benefits will be a significant recurring expense.
- Maintenance and Equipment Regular upkeep of the park’s slides, attractions, and safety equipment is crucial to ensure everything runs smoothly and remains compliant with safety standards.
- Utilities and Facility Costs Operating a large entertainment space will incur ongoing expenses for electricity, heating, cooling, and water, especially for a park with high foot traffic.
- Insurance Liability insurance, especially in an adventure park setting, will be essential to cover any potential risks or accidents.
- Marketing and Promotions Continued local marketing efforts, along with promotions and events, help drive traffic and keep the brand top-of-mind within the community.
These operational costs are key to maintaining the success of your franchise and ensuring long-term growth in your local market.
Slick City Franchise Fees
When considering the financial commitment of opening a Slick City franchise, it’s essential to understand the ongoing fees that come with operating under their brand. These fees help maintain the franchise’s quality, marketing reach, and support system, ensuring the continued success of your business. Here’s a breakdown of the key financial obligations you can expect:
- Royalty Fee You’ll pay a 7% royalty fee on your gross sales during the first partial year and the first full calendar year. After that, the fee will range from 5.5% to 7%, depending on your gross sales. This fee is collected weekly and supports corporate operations, brand upkeep, and ongoing innovations.
- Brand Fund Contribution A 1% brand fund contribution is required, payable weekly. This fee goes toward national marketing efforts to ensure consistent brand exposure and drive customer traffic to your location.
- Additional Fees There are additional fees for training programs, technology, and other items provided by Slick City that may be applied.
Understanding these fees is crucial as they play a pivotal role in supporting your franchise and ensuring long-term sustainability while maintaining the brand’s high standards.
Slick City Franchise Earnings
While specific earnings data for Slick City franchises is not available, we can provide an informed overview based on industry standards and the franchise’s characteristics. Adventure and family entertainment franchises typically generate strong revenue streams due to their appeal to families, groups, and event-driven experiences like birthday parties and corporate outings. Slick City, with its innovative proprietary slides and unique park experience, has the potential to draw large crowds, particularly in high-traffic locations. Franchisees that can tap into local community engagement, school partnerships, and event hosting often see increased foot traffic and higher revenue.
Additionally, the ability to offer a range of services—like private event bookings, merchandise, and food and beverage sales—can contribute to multiple income streams. As with most family entertainment franchises, profitability can be heavily influenced by factors such as location, operational efficiency, and local demand. Franchisees who effectively manage operational costs and maximize their park’s potential for repeat business will have a strong chance of seeing healthy earnings.
How to Open a Slick City Franchise
Becoming a Slick City franchisee involves a detailed process to ensure that both you and the franchise are well-prepared for success. From the initial inquiry to the grand opening of your business, the following steps outline the typical journey for franchisees:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application After initial contact, you’ll complete a formal franchise application where you provide detailed financial information and explain your interest in the business. This helps the franchisor evaluate your suitability as a franchisee.
- Discovery Day Next, you may be invited to a Discovery Day, where you’ll meet the corporate team, visit a location, and get a hands-on feel for the business. This is also a chance for both parties to evaluate fit.
- Franchise Agreement Signing If all goes well, you’ll move forward with signing the franchise agreement. This legal contract solidifies your commitment to becoming a Slick City franchisee and details your obligations and rights.
- Financing & Site Selection Once the agreement is signed, you’ll secure financing if needed and begin the site selection process. This involves finding a suitable location with the help of the franchise team, followed by lease negotiation.
- Training Program You and your management team will participate in an extensive training program covering operations, safety protocols, marketing, and customer service to prepare you for running your franchise.
- Build-out & Pre-Opening Preparations After training, you’ll work on the build-out of your location, setting up equipment and attractions. Pre-opening activities include staff recruitment, marketing, and finalizing any operational systems.
- Grand Opening With everything in place, you’re ready to open your doors and begin operations. The corporate team will typically offer support during this stage to ensure a smooth launch.
Pros & Cons
Pros
Innovative and Unique Concept: Slick City’s proprietary slides and focus on constant innovation set it apart from other family entertainment franchises, offering a fresh experience that attracts families and event bookings.
Strong Industry Support: The franchise benefits from leadership and advisory teams with experience in major brands like Sky Zone, Universal Studios, and Burger King, ensuring a well-rounded support system.
Growing Demand for Family Entertainment: Family entertainment parks are in demand, especially those that offer unique, adrenaline-pumping activities. Slick City targets a broad demographic, including families, schools, and corporate groups, leading to strong potential for consistent foot traffic.
Flexibility in Location: While location is key, Slick City can adapt to a variety of markets, giving franchisees the flexibility to find a prime spot in suburban, urban, or tourist-heavy areas.
Cons
High Initial Investment: The total investment range is relatively high, which might pose a challenge for potential franchisees who need significant capital to get started.
Operational Complexity: Running a family entertainment park requires strict adherence to safety protocols and management of high-energy attractions, which can lead to operational challenges, including staff turnover and ongoing maintenance.
Location Sensitivity: Success heavily depends on securing a high-traffic location in a market that can sustain regular footfall. Poor location choice could impact profitability.
Competition in the Family Entertainment Industry: While Slick City has unique offerings, it still competes with other established adventure parks, trampoline parks, and entertainment centers, requiring strong local marketing efforts.
