Having a proven business in Australia, Flip Out used the franchise model to expand globally.
The brand was introduced to the U.K. in 2015 as an operator of trampoline parks and has since evolved and grown into a family entertainment center (FEC), welcoming over five million fee-paying customers a year and spearheading the marketplace in the U.K. and Europe, especially in shopping centers. The family fun entertainment concept considers the U.K. its most developed and successful Flip Out market followed by Australia, New Zealand and Mexico, and now has over 60 sites open globally. The brand is now the biggest trampoline park operator in the U.K.
In the U.K. the business has gone through its start-up, growth and now is in its expansion stage. There are 26 sites open and a desire to expand by another 25 over the next three years to ride the growth in popularity of entertainment companies. Infrastructure has been created to support this ambition and to support expansion internationally throughout Europe and beyond.
What are Flip Out’s unique selling points?
These give Flip Out a tangible advantage over its competitors:
- Experience in the growing family entertainment industry since 2012
- Exciting look and feel of the brand
- A combination of offerings is used to create an unforgettable customer experience and memories for families
- Supplier network
- Infrastructure for build and ongoing support.
Strength of brand
- Very distinctive design, look and feel of the brand
- Website and collateral look and feel
- Successful track record of expansion.
- Core management team of many years
- Involvement in the evolution of the brand and its distinct offering.
- The U.K. and the international team have more than 50 years of combined experience.
Why invest in a Flip Out franchise?
10 reasons to invest in Flip Out:
- Internationally proven model with sites from Australia to Saudi Arabia
- Market leaders in many of the countries it operates in
- It has a policy of constant innovation and improvement of its customer experience
- The customer experience – kids constantly prefer Flip Out to its competitors when asked where they prefer to go
- Each park is unique but instantly recognizable as a Flip Out using its well-developed brand
- Use of industry-leading data-driven solutions to ensure the business is optimized for success
- Its size gives it buying power that delivers great value to franchisees
- Safety, training, and insurance solutions developed over the years and with the data from millions of customer visits
- The experienced marketing team, with insight and ability to deliver results
- Landlords love Flip Out as it brings hundreds of thousands of new visitors a year to their locations.
How does the Flip Out franchise model work?
Flip Out provides a leisure venue selling a complete range of time-based experience sessions, children’s parties, and a food offering within an indoor park and café environment, tabling a wide range of offers, promoted via the consumer website, social media, events, and promotions
Franchisees are given the opportunity to open and own a site using the brand, knowledge, and experience gained over many years of operating.
The franchisee pays for an area by way of a franchise fee, signs a lease on a property, and pays for the build of the site. The Flip Out team will support them all the way from site acquisition to build, opening, and beyond. Ongoing, the franchisee will pay a regular royalty and central marketing fee.
What kind of franchisee is Flip Out looking for?
Flip Out is looking for prospective investors who love the brand and what it stands for, have a desire to run a family-focused business with the funds to support such a venture.
Flip Out offers prospects various ways to get involved:
- A Flip Out franchisee has the rights to an area and for the use of its business model. The use is governed by brand guidelines and is for the duration of the franchise agreement.
- A franchisee is likely to start with one outlet and progress to more as their business grows, Flip Out has several franchisees throughout the world with multiple locations.
- This is its entry-level and most popular first move into the world of franchising.
- Some of its prospects have the means, desire, and business ambitions to open more than one site right from day one. This is where they can consider becoming an area developer and have several sites in a cluster
- Typically, as an area developer franchisees would open one park whilst having agreed to open more over a period, for which they pay an area developers fee on a per park basis.
- Flip Out does welcome prospects from all over the world, and it often wishes to open sites in a specific country where it may not have a presence. This is when it discusses the master franchise model
- As a master franchisee, Flip Out appoints the rights to develop in a specific area, typically a country, and they are entrusted with recruiting franchisees and area developers for that area
- The business model is different from that of a franchisee and area developer, however, Flip Out does have some master franchisees who are also owners of parks as franchisees.
- This is where Flip Out offers the opportunity to own or invest in a Flip Out but where the investor is looking for an operating partner to run the business
- They may already own another business or be successful in a career and want to share and pass on their expertise but not within a full-time commitment. This is an active investment opportunity with fun benefits for the investor and their family.
- An operator may have great experience that would be right for operating a Flip Out and either they or the brand have an investor or two who could benefit from their input, so the brand teams them up to operate a site.
What training and support does a Flip Out franchisee receive?
Starting a new business or a new venture that is unproven can be very difficult and can often lead to failure. Franchisees will benefit from the experience of nine years of global market knowledge, a proven, profitable business model, and a huge amount of support at its fingertips, from financial planning, organization, sourcing personnel, operation training, legal structures, health and safety, research and development input, training, best practice and more.
Flip Out gives its franchisees the tools and support to make its franchisees’ business a success. It is committed to providing dedicated support through adequate initial training with experienced company staff, followed by on-site training at the arena to help establish the day-to-day operations and procedures.
Flip Out is actively looking for locations and franchisees in Europe and is also welcoming inquiries globally for master franchisees and area developers who would work with the brand to open up their specific country territory.
What are the franchise terms of agreement and renewal?
The franchise agreement is usually for a 10 year period and able to be extended by way of mutual agreement and payment of an administration fee.
Property leases do vary in length, however, Flip Out does aim for 15 years with a 10-year break clause.
What does the franchisee get in return?
Buying a franchise reduces an enormous amount of the complexities associated with a start-up company. Franchisees will benefit from the experience of the franchisor, as well as a proven business model.
They will also enjoy the satisfaction that comes from working with other people; their team, their customers, and the local community. Many of its franchise owners have made an incredibly positive impact at a local level with the global brand.
Why is now a great time to franchise this concept?
Due to the changes in the retail and leisure sectors over the last few years, Flip Out has been able to benefit and achieve tangible advantages.
COVID-19 and the return from lockdown have seen an influx of end-user customers to its sites and the exit of retailers from shopping centers due to market pressures which has ensured property availability.
There have been several properties vacant in ideal locations for Flip Out and where landlords have lost tenants and therefore, footfall. They welcome Flip Out sometimes with supporting contributions towards opening costs, as Flip Out can make a substantial difference in attracting families back to their sites. The timing to act now is therefore ideal as this “window of opportunity” could be limited until the property is taken.
Flip Out has investment opportunities from as little as £100,000 as an investor, with different structures including franchisee, area developer and master franchise.
The average Flip Out park costs between £1.5 – £3m and the brand requires a minimum liquid capital injection of £500,000 to establish one of these. Flip Out has a number of funding partners to assist the balance of the build. Its average park will turn a profit in under three years.
The franchise fee is £30,000 plus VAT
Area developer is £50,000 plus VAT
Master franchise is £50,000 to £250,000 plus VAT (subject to development schedule)