Children’s fitness center franchises collectively earned $336 million in total revenue in 2019. With a total of 1,123 businesses in the U.S., the average franchise earned a gross $299,198.58.
The child services industry generally sees good returns on investment. Over 30 percent of families have an annual income between $75,000 and $150,000. Families with disposable income spend more money on entertainment. Of the total cash families spend on entertainment, 28 percent went toward experiences in 2015, and that percentage has continued its upward trend.
The profit margins and returns of an indoor playground vary by location, business model and overhead costs. Some businesses use a family entertainment center as their primary source of revenue. For other companies, such as malls and retail outlets, an indoor playground is an attraction that brings families in the door. In these cases, the playground brings more traffic and revenue to the business.
Overhead costs are also an important factor in profit and success. If you plan on renting a space, the lease you sign will have a big impact on profit. A large building will cost more to rent, and the increased space allows you to build more attractions and house more families at once. With increased space, you can also rent out rooms for birthday parties or fitness classes.
Commercial rent costs more in areas with higher visibility. Families usually find indoor playgrounds via word of mouth and internet research. Since visitors usually plan ahead of time, visibility isn’t as important. So, you can take advantage of lower rent costs at a more remote location.
As you begin planning your indoor playground, research your local market to help determine business costs in your area.