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Vertical Leap Trampoline Park
Ashley Elliott, Evan Dixon, Britney Anderson
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Contents 1.0 Executive Summary ............................................................................................................................. 3
2.0 Company Summary ............................................................................................................................. 3
2.2 Mission Statement ............................................................................................................................... 4
2.3 Company Ownership Structure ......................................................................................................... 4
2.4 Company Locations and Facilities .................................................................................................... 4
2.5 Start-Up Summary ............................................................................................................................... 4
3.0 Operations Summary .......................................................................................................................... 7
4.0 Market Analysis Summary ................................................................................................................. 7
4.1 Market Segments ................................................................................................................................. 8
5.0 Management and Personnel Summary .......................................................................................... 10
6.0 Financial Reports ............................................................................................................................... 12
7.0 Methodology ....................................................................................................................................... 25
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1.0 Executive Summary
Vertical Leap is a trampoline park located in northeast Raleigh. The company will be a
partnership of the 466 group comprised of Ashley Elliot, Britney Anderson, Evan Dixon.
Being located near other trampoline parks was the intent of Vertical Leap as the
company wishes to fulfill its mission statement to become the elite trampoline park and
surpass the competition. Vertical Leap is unique in the fact that the owners are local and
not a franchise. Vertical Leap is invested in the community and has the ability to invest
in the community. By not being a large franchise and offering special and unique
programs, such as Jump Around Drop Off, Summer Camp, partnerships with Cary
Invasion, and so much more Vertical Leap can connect to the community. Group 466
will contribute a combined $300,000 to start the company. Research shows that Vertical
Leap’s target market is the age range of seventeen and below and northeast Raleigh is
the perfection location for this age group. With over fifty schools in the area and many
neighborhoods the clientele is strong and present. Looking at Vertical Leap’s startup
cost the company will be in debt $335,122. The estimated revenue for similar
companies is around $230,000. Due to the location and the cliental Vertical leap plans
to exceed similar revenues and plans to have at least $300,000 in revenue. The main
revenue sources for Vertical Leap will be jumping times, private party rentals, classes,
leagues, and kid’s programs.
2.0 Company Summary
The company would be founded by group 466 which includes three contributors, Ashley Elliott, Britney Anderson, and Evan Dixon, who will each provide $100,000. The company aims to meet three objectives:
Become the premier trampoline park in the Raleigh area. Grow daily attendance to the park to over 100 visitors per day. Promote a healthy lifestyle through our “Airobics” Fitness Classes.
The location of the company would be on 2205 Westinghouse Boulevard in Northeast Raleigh. Vertical Leap will be located near two other trampoline parks. The location was chosen due to the target market and the fact that as a local company we can provide competitive prices and offer more programs that are community specific. Group 466 only requirements of the company is that they reach the standard of $250,000 in profit by year three. Vertical Leap’s mission statement is below.
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2.2 Mission Statement
The mission of Vertical Leap is to be the premier trampoline park in Raleigh and surrounding areas. Vertical Leap focuses on providing customers with high quality, safe and friendly fun entertainment for all ages.
2.3 Company Ownership Structure
Vertical Leap is owned by Group 466 comprised of Ashley Elliott, Britney Anderson and Evan Dixon. The business will not become an S Corporation until the second trampoline park is opened in either Cary, NC or Garner, NC after the third year of business. 2.4 Company Locations and Facilities Vertical Leap will be located at 2205 Westinghouse Boulevard in Raleigh, NC. It will have 20,000 sq. feet and be customized to the needs of our park. There are other Trampoline Parks in Raleigh specifically North Raleigh. Vertical Leap will be 20 miles from other Trampoline Parks but will still be close enough to accommodate the needs of the entire Raleigh community.
2.5 Start-Up Summary
The start-up cost of Vertical Leap is focused on customizing the building space to the needs of our park. Owners, Ashley Elliott, Britney Anderson and Evan Dixon will invest $100,000 each in the business and will obtain a long-term loan. We have created a chart to show start-up expenses and funding.
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Start Up Cost Balance Sheet
Vertical Leap
Assets
Account Balance
Current Asset
Cash on Hand 300,000.00
Total for Current Asset 300,000.00
Total Assets 300,000.00
Liabilities
Account Balance
Current Liability
Accounts Payable 715,122.00
Total for Current Liability 715,122.00
Total Liabilities 715,122.00
Equity
Account Balance
Previous Year(s) Earnings 0.00
Current Year Earnings (415,122.00)
Total equity (415,122.00)
Total Liabilities and Equity 300,000.00
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Accounts Payable Transactions
Vertical Leap
START UP COST
Date Transaction Debit Credit Balance
Nov. 25, 2014 Advertising/Promotions 0.00 15,000.00 15,000.00
Nov. 25, 2014 Utilities 0.00 10,000.00 25,000.00
Nov. 25, 2014 Trampoline Installation 0.00 350,000.00 375,000.00
Nov. 25, 2014 Installation Labor 0.00 5,800.00 380,800.00
Nov. 25, 2014 Freight Cost 0.00 622.00 381,422.00
Nov. 25, 2014 Stairs and Platforms 0.00 40,000.00 421,422.00
Nov. 25, 2014 Foam Pit 0.00 3,200.00 424,622.00
Nov. 25, 2014 Basketball Goals 0.00 5,000.00 429,622.00
Nov. 25, 2014 Additional Netting 0.00 1,000.00 430,622.00
Nov. 25, 2014 Startup cost 0.00 5,000.00 435,622.00
Nov. 25, 2014 Monthly Cost 0.00 1,000.00 436,622.00
Nov. 25, 2014 Office Supplies 0.00 4,000.00 440,622.00
Nov. 25, 2014 Furniture -Office, concession, lobby 0.00 15,000.00 455,622.00
Nov. 25, 2014 Monthly Lease 0.00 90,000.00 545,622.00
Nov. 25, 2014 Software Package 0.00 1,500.00 547,122.00
Nov. 25, 2014 Arcade Machines-Start Up 0.00 8,000.00 555,122.00
Nov. 25, 2014 Insurance 0.00 70,000.00 625,122.00
Nov. 25, 2014 TV, computer, sound system 0.00 10,000.00 635,122.00
Nov. 25, 2014 Facility Rent 80,000.00 715,122.00
Total 0.00 715,122.00
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3.0 Operations Summary
Vertical Leap is a premier trampoline park in Raleigh, NC. The trampoline park offers 20,000 square feet of wall to wall trampolines with areas for open jump, trampoline dodgeball, trampoline basketball and “Airobics.” Vertical Leap can be used for birthday parties and rented for private parties. The following is the fee schedule:
Jumping - $12/hr. Airobics Classes (Tuesdays and Thursday 6pm – 7pm, Mondays and
Wednesdays 7pm – 8pm) - $9 each class or $75 Airobics Pass for 10 classes. Birthday Parties (Weekdays and for 10 Jumpers, each additional jumper add
$20) - $275 Birthday Parties (Weekends and for 10 Jumpers, each additional jumper add
$22) - $325 Private Parties - $1,100/hr and $1,900/2 hrs.
4.0 Market Analysis Summary
Trampoline Parks have become a popular new attraction for all ages with companies like Sky High and Defy Gravity becoming some of the first to offer this type of recreation. The amount of participants is growing rapidly and becoming one of the most popular pastimes for adults and children alike.
Beginning in year two, to expand our target market the following marketing tactics will
be put in place:
- Summer Camps: Local kids ages 4 – 12 will have the opportunity to participate in day
camps at Vertical Leap. The camp will run from 8 – 12:30 and 12:30 – 5. Campers can
choose between sessions and each session cost $200 per week. Camps will run weekly
for six weeks during the summer months (June – July.) The goal of the camp is to
involve local kids and increase awareness of the Vertical Leap name.
- Cary Invasion Sponsorship: There will be an average of ten players per team with 10
different basketball teams ranging in ages from 3 – 50.Cary Invasion will sponsor t-
shirts and make appearances. League fee is $150.
- Jump Around Drop Off: Parents can enroll their children under 5 years of age on
Tuesdays and Thursdays from 8 – 10am for $10/hour. Children will have the opportunity
to experience all that Vertical Leap has to offer.
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4.1 Market Segments
The above graph shows the target market that Vertical Leap would appeal to in the Raleigh area. The majority of our target market would be for ages seventeen and younger. These percentages were comparable to other markets, such as rock wall facilities, gymnastic facilities, and indoor facilities. Having a large appeal to youth Vertical Leap has catered many of the marketing plans and offerings to youth.
15.40%
36.70%20.70%
27.20%
Market Segmentation
Over age 45 17 and Younger
26-44 18-25
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4.2 Marketing and Pricing Strategies
Admissions
Vertical Leap wants to be accessible to people of all demographics. Offering a competitive rate of $12 per hour, Vertical Leap will be the most budget-friendly trampoline park in the area.
Other
The “Airobics” courses offer a new way to workout and have a good time while burning calories and gaining muscle. These classes will be available on Mondays and Wednesdays from 7pm - 8pm or Tuesdays and Thursdays from 6pm - 7pm and are only $9 per class. Participants may also purchase an “Airobics” Pass for $75 which will admit them into 10 classes.
38%
31%
20%
11%
Income Sources
Admission Kid's Programs
Facility Rentals Other
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Kid’s programs
Birthday Parties will be available for $275 (each additional jumper $20) on the weekdays and $325 (each additional jumper $22) for the weekends. Birthday Parties will include a 1 hour jumping pass, exclusive use of the party room for 1.5 hours, a host/hostess to set up and clean up, 1 large slice of pizza and 1 beverage per jumper, plates, utensils and a t-shirt for the Birthday Jumper.
Facility Rentals
Vertical Leap will also be available for private parties. Private Parties will be available
for up to 100 people and the park will be shut down for the length of the party. Events
will not be able to be held during our “Airobics” class times or the weekends (Friday-
Sunday). Private parties can rent the facility for $1,100 for an hour or $1,900 for two
hours.
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5.0 Management and Personnel Summary
Our organization will be comprised of one manager, two assistant managers and eight part time employees. The manager will be paid a salary of $35,000 while the assistant managers will receive $18,000 each. The eight part time employees will be compensated minimum wage, but can make additional money working parties and extra events past working hours.
Job Descriptions Manager Will be in charge of the Vertical Leap Organization as a whole and responsible for scheduling extracurricular events. Oversees operational aspects as they pertain to Vertical Leap’s mission as an organization while conducting excellent customer service. Provides assistance and training for all employees, while making sure the organization continues to grow. Assistant Manager Responsible for monitoring the behaviors and contributions of the part time employees. Represent the company by acting as a role model to the people reporting to them. In charge of interviewing and hiring staff to perform the daily duties and responsibilities presented by the company. Assist with adding new features to the venue upon request of the owners. Part Time Part time employees are responsible to make sure that all vertical leap rules and regulations are being followed. Their job duties include the following, but are not limited to: check in, supervision, cleaning, and any additional task required by the manager and assistant mangers. The job will be pay minimum wage.
Manager
Assistant Manager
Part TimePart TimePart TimePart Time
Assistant Manager
Part TimePart TimePart TimePart Time
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6.0 Financial Reports
Balance Sheet – Year One
Vertical Leap
Assets
Account Balance
Current Asset
Cash on Hand 533,327.00
Total for Current Asset 533,327.00
Total Assets 533,327.00
Liabilities
Equity
Account Balance
Account Balance
Current Liability
Accounts Payable 625,122.00
Total for Current Liability 625,122.00
Total Liabilities 625,122.00
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Account Balance
Previous Year(s) Earnings 0.00
Current Year Earnings (91,795.00)
Total equity (91,795.00)
Total Liabilities and Equity 533,327.00
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Cash on Hand Transactions – Year One
Date Transaction Debit Credit Balance
Dec. 1, 2014 Income - Evan Dixon
100,000.00 0.00 100,000.00
Dec. 1, 2014 Income - Ashley Elliott Contribution 100,000.00 0.00 200,000.00
Dec. 1, 2014 Income - Britney Anderson
100,000.00 0.00 300,000.00
Dec. 2, 2014 Income - Other Income-Airobics
25,116.63 0.00 325,116.63
Dec. 2, 2014 Income - Facility Rentals
45,660.60 0.00 370,777.23
Dec. 2, 2014 Income - Kid's Programs
70,783.23 0.00 441,560.46
Dec. 2, 2014 Expense - Yearly Total for hourly work
0.00 24,000.00 417,560.46
Dec. 2, 2014 Expense - Yearly Salary for Two
Assistant Managers
0.00 36,000.00 381,560.46
Dec. 2, 2014 Expense - Yearly Salary for Manger
0.00 35,000.00 346,560.46
Dec. 2, 2014 Building
80,000.00 0.00 426,560.46
Dec. 2, 2014 Income - Gatorade Sponsorship 5,000.00 0.00 431,560.46
Dec. 2, 2014 Income - Concessions 15,000.00 0.00 446,560.46
Dec. 2, 2014 Income – Admission 86,766.54 0.00
Total 533,327.00 95,000.00
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Vertical Leap – Year One Accounts Payable Transactions
Date Transaction Debit Credit Balance
Nov. 25, 2014 Advertising/Promotions
0.00 15,000.00 15,000.00
Nov. 25, 2014 Utilities 0.00 10,000.00 25,000.00
Nov. 25, 2014 Trampoline Installation 0.00 350,000.00 375,000.00
Nov. 25, 2014 Installation Labor
0.00 5,800.00 380,800.00
Nov. 25, 2014 Freight Cost
0.00 622.00 381,422.00
Nov. 25, 2014 Stairs and Platforms
0.00 40,000.00 421,422.00
Nov. 25, 2014 Foam Pit 0.00 3,200.00 424,622.00
Nov. 25, 2014 Basketball Goals
0.00 5,000.00 429,622.00
Nov. 25, 2014 Additional Netting
0.00 1,000.00 430,622.00
Nov. 25, 2014 Start up cost
0.00 5,000.00 435,622.00
Nov. 25, 2014 Monthly Cost
0.00 1,000.00 436,622.00
Nov. 25, 2014 Office Supplies
0.00 4,000.00 440,622.00
Nov. 25, 2014 Furniture -Office, concession, lobby
0.00 15,000.00 455,622.00
Nov. 25, 2014 Software Package 0.00 1,500.00 457,122.00
Nov. 25, 2014 Arcade Machines-Start Up 0.00 8,000.00 465,122.00
Nov. 25, 2014 Insurance
0.00 70,000.00 535,122.00
Nov. 25, 2014 TV, computer, sound system 0.00 10,000.00 545,122.00
Dec. 2, 2014 Building 0.00 80,000.00 625,122.00
Total 0.00 625,122.00
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Balance Sheet – Year Two
Vertical Leap
Assets
Account Balance
Current Asset
Cash on Hand 342,000.00
Total for Current Asset 342,000.00
Total Assets 342,000.00
Liabilities
Account Balance
Current Liability
Accounts Payable 156,500.00
Total for Current Liability 156,500.00
Total Liabilities 156,500.00
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Equity
Account Balance
Previous Year(s) Earnings 0.00
Current Year Earnings 185,500.00
Total equity 185,500.00
Total Liabilities and Equity 342,000.00
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Cash on Hand Transactions – Year Two
Vertical Leap
Date Transaction Debit Credit Balance
Dec. 2, 2014 Expense - Yearly Total for hourly
work
0.00 24,000.00 (24,000.00)
Dec. 2, 2014 Expense - Yearly Salary for Two
Assistant Managers
0.00 36,000.00 (60,000.00)
Dec. 2, 2014 Expense - Yearly Salary for Manger 0.00 35,000.00 (95,000.00)
Dec. 2, 2014 Building 80,000.00 0.00 (15,000.00)
Dec. 2, 2014 Income - Gatorade Sponsorship 5,000.00 0.00 (10,000.00)
Dec. 2, 2014 Income - Concessions 15,000.00 0.00 5,000.00
Dec. 2, 2014 Income - Cary Invasion Sponsorship 2,000.00 0.00 7,000.00
Dec. 2, 2014 Income - Basketball League-Other
Income
15,000.00 0.00 22,000.00
Dec. 2, 2014 Income - Jump Around Drop Off-
Other Income
20,000.00 0.00 42,000.00
Dec. 2, 2014 Income - Facility Rentals 60,000.00 0.00 102,000.00
Dec. 2, 2014 Income - Kid's Programs 114,000.00 0.00 216,000.00
Dec. 2, 2014 Income - Other Income-Airobics 33,000.00 0.00 249,000.00
Dec. 2, 2014 Income - Income-Admissions 93,000.00 0.00 342,000.00
Total 437,000.00 95,000.00
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Accounts Payable Transactions – Year Two
Vertical Leap
Date Transaction Debit Credit Balance
Nov. 25, 2014 Insurance 0.00 40,000.00 40,000.00
Nov. 25, 2014 Advertising/Promotions 0.00 15,000.00 55,000.00
Nov. 25, 2014 Software Package 0.00 1,500.00 56,500.00
Nov. 25, 2014 Start up cost 0.00 5,000.00 61,500.00
Nov. 25, 2014 Monthly Cost 0.00 1,000.00 62,500.00
Nov. 25, 2014 Office Supplies 0.00 4,000.00 66,500.00
Nov. 25, 2014 Utilities 0.00 10,000.00 76,500.00
Dec. 2, 2014 Building 0.00 80,000.00 156,500.00
Total 0.00 156,500.00
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Balance Sheet – Year Three
Vertical Leap
Assets
Account Balance
Current Asset
Cash on Hand 522,000.00
Total for Current Asset 522,000.00
Total Assets 522,000.00
Liabilities
Account Balance
Current Liability
Accounts Payable 176,500.00
Total for Current Liability 176,500.00
Total Liabilities 176,500.00
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Equity
Account Balance
Previous Year(s) Earnings 0.00
Current Year Earnings 345,500.00
Total equity 345,500.00
Total Liabilities and Equity 522,000.00
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Cash on Hand Transactions – Year Three
Date Transaction Debit Credit Balance
Dec. 2, 2014 Expense - Yearly Salary for Manger 0.00 35,000.00 (35,000.00)
Dec. 2, 2014 Income - Summer Camp Income 200,000.00 0.00 165,000.00
Dec. 2, 2014 Income - Jump Around Drop Off- Other
Income
20,000.00 0.00 185,000.00
Dec. 2, 2014 Expense - Yearly Total for hourly work
0.00 24,000.00 161,000.00
Dec. 2, 2014 Income - Cary Invasion Sponsorship
2,000.00 0.00 163,000.00
Dec. 2, 2014 Income - Basketball League-Other Income 15,000.00 0.00 178,000.00
Dec. 2, 2014 Income - Facility Rentals
60,000.00 0.00 238,000.00
Dec. 2, 2014 Income - Concessions
15,000.00 0.00 253,000.00
Dec. 2, 2014 Income - Kid's Programs
114,000.00 0.00 367,000.00
Dec. 2, 2014 Building
80,000.00 0.00 447,000.00
Dec. 2, 2014 Expense - Summer Camp-Staff, extra
utilities, Supplies
0.00 20,000.00 427,000.00
Dec. 2, 2014 Expense - Yearly Salary for Two Assistant
Managers
0.00 36,000.00 391,000.00
Dec. 2, 2014 Income - Income-Admissions 93,000.00 0.00 484,000.00
Dec. 2, 2014 Income - Other Income-Airobics
33,000.00 0.00 517,000.00
Dec. 2, 2014 Income - Gatorade Sponsorship 5,000.00 0.00 522,000.00
Total 637,000.00 115,000.00
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Accounts Payable Transactions – Year Three
Vertical Leap
Date Transaction Debit Credit Balance
Nov. 25, 2014 Insurance
0.00 60,000.00 60,000.00
Nov. 25, 2014 Advertising/Promotions
0.00 15,000.00 75,000.00
Nov. 25, 2014 Software Package 0.00 1,500.00 76,500.00
Nov. 25, 2014 Start up cost
0.00 5,000.00 81,500.00
Nov. 25, 2014 Monthly Cost
0.00 1,000.00 82,500.00
Nov. 25, 2014 Office Supplies 0.00 4,000.00 86,500.00
Nov. 25, 2014 Utilities
0.00 10,000.00 96,500.00
Dec. 2, 2014 Building
0.00 80,000.00 176,500.00
Total 0.00 176,500.00
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Projected Profit and Loss Year One – Three
Break Even Analysis
BE= Fixed Cost: $231,000*(1-.185)
BE= $188,265
Fixed Cost Total: $231,000
Salaries: 35,000 and 36,000
Building Rent: 80,000
Insurance: 70,000
Utilities: 10,000
-100,000.00
-50,000.00
0.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
350,000.00
Year 1 Year 2 Year 3
Profit
Profit
Year One – ($91,795)
Year Two – $185,500
Year Three - $ 345,500
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7.0 Methodology
Indoor Climbing Walls in the US. (2014, January 1). Retrieved November 29, 2014, from
http://clients1.ibisworld.com.prox.lib.ncsu.edu/reports/us/industry/default.aspx?entid=4377
Trampoline parks have seen a boost in popularity throughout the United States in recent years. Looking
at IBIS World, we chose to compare trampoline centers to an indoor rock climbing facility. The reason
behind this was due to the major similarities in the facility dimensions, target market and incoming
revenue sources.
After speaking with an employee from Fun Spot Trampolines, a leading supplier for trampoline parts
around the world, we learned several key factors to consider when looking at our expense breakdown.
First and foremost was the size and cost of our building of interest. As indicated by Fun Spot
Trampolines, most successful trampoline parks are approximately twenty thousand square feet in size.
While renting a building of this size, Fun Spot Trampolines stressed the importance of not paying more
than six dollars per square foot. Due to the chance of injury, all trampoline parks have an insurance
policy. Such policies vary depending on the predicted annual net income. For most instances involving
new trampoline parks, an insurance policy will cost around seventy thousand dollars, but can be
reevaluated in future years to decrease costs.
Vertical Leap will be the first trampoline park located in northeast Raleigh, roughly twenty miles away
from a similar venue. Looking at nearby facilities and their daily rates, we chose to establish a
competitive market pricing (see table below). Because our structure is bigger than our competition as
well as a superior product, we believe we will reach our target market with great simplicity. The target
market for these centers usually center around families with children anywhere from five to twenty five
years of age.
Vertical Leap Defy Gravity Launching Pad
30 minutes $8 $10 $8
1 hour $12 $14 $12
2 hours $20 $22 $22
Weekday Birthday Party
$275 $275 $300
Weekend Birthday Party
$325 $325 $300
These prices were found at the following local trampoline parks:
http://www.defygravity.us/raleigh/home.aspx
https://www.jumpskyhigh.com/
Following our first year we will begin to incorporate additional features in our venue. In our second year
we will begin our Jump Around Drop-Off program. This will allow parents to drop off their children from
8 am to 10 am twice a week if need be so they can go out and run errands. The cost will be $10 an hour
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per child dropped off. Also, in our second fiscal year we will begin to integrate a basketball league,
sponsored by the Cary Invasion. This will be a great opportunity for both children and adults to turn back
the clock and participate in an organized sport league, while staying fit and having a blast. To join a
league all players will have to pay a fee of $150. The players will be put on teams based on their age
with multiple age groups that allow anyone the chance to join. Lastly, in our third business year we will
add a summer camp program six weeks starting in June and ending in July. We will split the day in two
parts, including a morning session from 8 am – 12:30 am and an afternoon session from 1 pm – 5:30 pm.
The cost of our camp will be $200 per week for each camper in attendance. We will limit each section to
a maximum of 100 jumpers for safety reasons.