# Trampoline Park Model Model an indoor trampoline park from admissions, parties, and memberships through to capacity, cash flow, and valuation. - Canonical: https://finamodel.com/templates/trampoline-park - Excel download: https://finamodel.com/templates/trampoline-park.xlsx - Category: Operating Businesses - Model type: Operating model - Difficulty: Intermediate - Audiences: Investors & analysts, Founders & operators, Trampoline park and FEC owner-operators, Franchise buyers and prospective operators, Small-business lenders and buyers, Leisure and family-entertainment investors - Tags: trampoline-park, family-entertainment, leisure, operating-model, dcf ## Overview This trampoline park model reflects the choices that make family entertainment venues different: general admission, birthday parties, and memberships all compete for the same physical space. It shows how demand and available court time shape revenue. Use it to plan pricing, capacity expansion, or a new venue. You can see whether more parties or members add value overall once their effect on walk-in capacity and operating costs is considered. ## What's included - Court inputs: opening court count, expansion trigger and size, operating hours/days, jumper-density safety cap - Party inputs: bookings/year and growth, hours reserved per booking, package price and escalation - Membership inputs: signup pace, churn rate, visits/member, annual dues rate and escalation - Demand inputs: single-visit demand and growth, GA ticket price and escalation, F&B per-cap and escalation - Cost stack: court-monitor staffing ratio and wage, management/occupancy step costs, marketing, G&A, liability insurance rate - Capital and working capital: new-court capex, maintenance capex, periodic mat-replacement cycle, AR/inventory/AP days, Year-0 NWC seed - Valuation: WACC, terminal growth, net debt, shares outstanding - Operations sheet: court roll-forward on a live utilization trigger, party/member/walk-in capacity waterfall, membership roll-forward, working capital, capex and depreciation - Revenue sheet: ticket, party, membership and F&B revenue, mix and utilization KPIs - P&L sheet: revenue to net income with per-line cost of revenue, the opex stack, margins, identity check - FCF sheet: NOPAT, depreciation add-back, capex, the working-capital balance (net of the unearned membership liability) and its change, unlevered FCF, discount factor, PV - Valuation sheet: sum of PV, terminal value, enterprise value, equity value, value per share, implied EV/EBITDA - Dashboard with courts, blended utilization Year 1 vs Year 7, party share of court-hours, unearned membership liability, revenue, EBITDA, EBITDA margin, enterprise value, value per share ## Trampoline Park Financial Model: Capacity, Parties, and Memberships This trampoline park financial model captures a distinctive operating challenge: birthday parties and memberships compete for the same finite court-hours as walk-in general admission. The model shows how party bookings displace GA capacity and how membership dues create a deferred revenue liability. It helps evaluate pricing, capacity expansion, and channel mix decisions. Rates and financial results described here reflect illustrative model settings, not industry benchmarks. ### Operating Drivers: Parties, Members, and Walk-Ins The model's core relationships start with court-hours, calculated as courts multiplied by 11 operating hours per day and 355 operating days per year. Demand flows through a three-tier waterfall. - Party bookings are served first and unconditionally, each reserving one court for 1.5 hours. Member visits follow as a prepaid entitlement in the model, with each member visiting eight times annually. - Single-visit walk-in demand fills whatever court-hours remain, capped by a safety-density limit of 4.3 jumpers per court-hour. This sequential allocation means the premium party channel subtracts supply from the mass-market walk-in channel rather than simply competing alongside it. Party demand grows at 13.0% annually, walk-in demand at 12.0%, and member signups at 7.0% with a 35% annual churn. These rates force notable capacity squeezes in specific years. ### Calculation Flow: Court Expansion and Capacity Binding Court expansion follows a one-year-lagged rule: courts increase by four if prior-year blended utilization exceeds 97%. Because this trigger reacts only to a year that has already crossed the line, the ceiling can bind hard before help arrives. - In the model, Year 2 closes below the threshold, but Year 3's growth on a flat court count pushes utilization past 100%, leaving demand unserved. Courts then open in Year 4, resetting utilization. - A second squeeze occurs in Year 7, with relief landing beyond the model's horizon. This squeeze-then-relief-then-squeeze pattern is a central output, showing how demand growth interacts with lumpy capacity additions. The model also isolates the party channel's contribution to unserved demand, revealing that party growth alone accounts for a substantial portion of the first bottleneck. ### Outputs: Revenue, P&L, and Valuation The model produces a four-line revenue build: general admission tickets, party packages, membership dues, and food and beverage per-capita spending. Cost of revenue is priced per line rather than blended, with party host labor, favors, and F&B cost of goods separate from near-zero direct costs on tickets and dues. - A court-monitor safety labor line scales with court-hours open, reflecting an insurance-driven staffing ratio. Management, marketing, occupancy, and elevated general-liability insurance complete the cost structure. - The P&L flows to EBITDA, EBIT, and net income. An unlevered free-cash-flow bridge discounts NOPAT plus depreciation, less capex and working capital changes, at WACC. Working capital nets the unearned-membership liability as a cash source. Enterprise value derives from explicit-period present value plus a Gordon-growth terminal value, less net debt, yielding equity value and value per share. ### Practical Use: Evaluating Mix and Capacity Decisions This layout suits a single-location venue evaluating how party bookings, memberships, and walk-in traffic interact. The membership module treats annual dues as a recurring subscription liability, with unearned revenue carried at 50% of closing members times the dues rate. - Member visits dilute blended GA revenue per visit even though they carry no incremental ticket price, because the denominator includes both paying and non-paying visits. The model's disclosed counterfactual shows that holding party bookings flat would have freed enough court-hours to cover a majority of the first capacity shortfall. - For an operator or analyst, the dashboard consolidates courts, blended utilization, party share of court-hours, unearned membership liability, revenue, EBITDA, and value per share. This helps assess whether promoting parties or memberships adds overall value once their effect on walk-in capacity and operating costs is considered. ## Party bookings displace capacity instead of adding to it Every other capacity-constrained format in this library resolves excess demand with a hard ceiling or a broker valve alongside existing capacity. Here, a party booking reserves an entire court exclusively, actively removing supply from the general-admission pool - a three-tier waterfall (party, then member, then walk-in demand) resolves who actually gets served, and a disclosed counterfactual shows party growth alone accounts for 77% of Year 3's unserved demand and 42% of Year 7's. ## A live, one-year-lagged capacity trigger that binds twice Court expansion responds to a simple prior-year-utilization trigger, the same proven live-formula pattern this library's imaging-center uses. Because the response only ever reacts after the fact, the ceiling binds hard in the very years no prior year gave it warning - Year 3 and Year 7 - leaving the second squeeze deliberately unresolved within the seven-year horizon, an honest forward-looking finding rather than a forced relief event. ## Designed for one-edit responsiveness Every input - the court build-out and expansion trigger, party and membership growth, the cost stack, capex and the WACC - is a named-range cell. Edit one and the operations build, revenue, P&L, free-cash-flow bridge, valuation, and dashboard all recompute. ## Workbook structure ### Cover Workbook overview, sheet legend, units, and tab-colour key. - Title and scope framing - Sheet-by-sheet purpose summary - Units and tab-colour legend ### Dashboard Headline metrics and the capacity-squeeze / membership-growth trend. - Courts and blended utilization Year 1 vs Year 7 - Party share of court-hours and unearned membership liability - Revenue, EBITDA and EBITDA margin - Enterprise value and value per share - Seven-year trend grid ### Assumptions Every driver in one sheet: courts, demand, membership, pricing, cost, capital. - Court count, expansion trigger and size, operating hours/days - Party, single-visit and membership demand and growth - Pricing: GA ticket, party package, dues rate, F&B per-cap and escalation - Cost stack rates: monitor staffing, management/occupancy steps, insurance, marketing, G&A - Capex, mat-replacement cycle, AR/inventory/AP days; WACC, terminal growth, net debt, shares ### Operations Court roll-forward, the capacity waterfall, membership roll-forward, and working capital. - Court roll-forward on a live prior-year-utilization trigger - Party, then member, then walk-in demand waterfall against GA capacity - Membership roll-forward: signups, churn, unearned dues liability - Working capital net of the unearned membership liability; capex and depreciation ### Revenue Revenue by channel. - Ticket revenue at an escalating GA price - Party revenue at an escalating package price - Membership dues revenue recognized against the average member base - Food & beverage per-cap revenue and mix KPIs ### P&L Revenue to net income. - Revenue from the Revenue sheet - Per-line cost of revenue (party host labor, F&B cost of goods) as cost of revenue - Gross profit and gross margin - Court-monitor labor, management, marketing, G&A, liability insurance, occupancy to EBITDA - Depreciation, EBIT, tax, net income, margins, identity check ### FCF Unlevered free cash flow bridge. - EBIT and unlevered tax from the P&L - NOPAT equals EBIT less unlevered tax - Add back depreciation - New-court capex, maintenance capex, periodic mat-replacement cycle - Change in working capital, net of the unearned membership liability - Unlevered free cash flow, discount factor, and PV ### Valuation Discounted cash flow. - Sum of PV of explicit UFCF - Gordon-growth terminal value and its PV - Enterprise value - Less net debt to equity value - Shares outstanding and value per share - Implied EV/EBITDA ## Features - **Party bookings displace capacity instead of adding to it:** Every other capacity-constrained format in this library resolves excess demand with a hard ceiling or a broker valve alongside existing capacity. Here, a party booking reserves an entire court exclusively, actively removing supply from the general-admission pool - a three-tier waterfall (party, then member, then walk-in demand) resolves who actually gets served, and a disclosed counterfactual shows party growth alone accounts for 77% of Year 3's unserved demand and 42% of Year 7's. - **A live, one-year-lagged capacity trigger that binds twice:** Court expansion responds to a simple prior-year-utilization trigger, the same proven live-formula pattern this library's imaging-center uses. Because the response only ever reacts after the fact, the ceiling binds hard in the very years no prior year gave it warning - Year 3 and Year 7 - leaving the second squeeze deliberately unresolved within the seven-year horizon, an honest forward-looking finding rather than a forced relief event. - **Membership dues as a real subscription liability:** Annual membership dues are billed upfront and recognized ratably, building a genuine unearned-revenue balance - the first true recurring-subscription deferred-revenue mechanic in this library's operating-business section. Guaranteed member visits carry $0 incremental ticket price, so blended GA revenue per visit compounds more slowly than the sticker price alone would suggest - a modest, disclosed dilution effect reported honestly rather than smoothed over. ## Use cases - **Intrinsic valuation of a single-location trampoline park:** Set the court, demand, pricing and cost assumptions and a WACC, and read enterprise value, equity value and value per share off the unlevered free-cash-flow bridge. - **Capacity and expansion-timing sensitivity testing:** Flex the utilization trigger, expansion size, or party-booking growth rate to see how the capacity squeeze, lost demand, and EBITDA margin respond to a faster or slower court build-out pace. - **Membership-mix and dues-pricing planning:** Flex the signup pace, churn rate, or dues rate to see how membership revenue, the unearned-dues liability, and blended GA revenue per visit respond to a richer or leaner membership push. ## Frequently asked questions ### What is a trampoline park financial model? A trampoline park financial model captures the seven-year operating economics and intrinsic value of a single-location indoor trampoline park / family entertainment center. It resolves general-admission, party and membership demand against one finite pool of court-hours through a three-tier capacity waterfall, builds a real subscription liability for prepaid membership dues, and discounts an unlevered free-cash-flow stream to enterprise value, equity value and value per share. ### Why do party bookings hurt general-admission capacity instead of just adding revenue? A birthday party reserves an entire court exclusively for the length of the booking - nobody else can jump on that court while a party is running. That is structurally different from a format like a bowling alley, where a private event just books existing lanes alongside walk-in play. Modeling the exclusive-use reservation explicitly is what lets the party channel's own growth genuinely squeeze walk-in capacity, rather than being a costless add-on. ### Why does the capacity ceiling bind in years the model didn't see coming? Court expansion responds to a live formula checking whether the prior year's utilization crossed a trigger - the same pattern this library's imaging-center uses. Because the check only looks backward, a year that itself jumps from comfortable to over-capacity in one step binds before any order has been placed, and relief only arrives the following year. That is a deliberate, honest reflection of how a single-location operator actually finds out it is undersized - not a smoothed assumption. ### Why is membership revenue modeled separately from the unearned membership liability? Membership revenue is what the P&L recognizes as dues are earned ratably over the year; the unearned membership liability is the balance-sheet obligation for dues already collected but not yet earned. Keeping them as two distinct lines - rather than collapsing dues straight to revenue - is what lets the model show a real, growing subscription liability that nets against working capital as a genuine source of cash, the same treatment this library gives every other deposit-style liability. ## Related templates - [Bowling Alley Model](https://finamodel.com/templates/bowling-alley) - [Escape Room Operator Model](https://finamodel.com/templates/escape-room) - [Campground / RV Resort Model](https://finamodel.com/templates/campground)