Jump In

Idea

Introduction

Jump In creates healthy family fun by developing large, inspiring, music-filled entertainment centres with thousands of square feet of safe, clean, and supervised trampolines for jumping, games and exercise. The product includes open jump, tumbletracks, dodgeball, a foam pit, basketball and other bespoke trampoline-based features.

We consider trampoline parks to be an exciting, scalable opportunity as the UK is significantly under-penetrated with 42 sites vs. 345 in the US / 44 in Australia. Moreover, many of the best markets in terms of demography, affluence, and access, are, as yet, untapped as growth has been concentrated in the North West.

The proposition caters for the whole family: children love quality, weatherproof, un-structured fun time; fitness enthusiasts come for our innovative "Wild Jump" classes; and adults come for corporate events and dodgeball leagues.

Perks;

£200 - 1 Gold ticket which each entitle you to a free jump + 20% off merchandise in store (excluding socks)

£400 - 2 Gold tickets which each entitle you to a free jump + 20% off merchandise in store (excluding socks)

£600+ - 3 Gold tickets which each entitle you to a free jump + 20% off merchandise in store (excluding socks)

Intended impact

Trampolines offer a way to get fit whilst having fun. Calorie burn is roughly similar to running, with some studies even showing greater energy consumption: “for similar levels of heart rate and oxygen consumption, the magnitude of biomechanical stimuli is greater with jumping on a trampoline than with running” (NASA). Trampolining helps with balance and coordination (the Journal of Electromyograhy and Kinesiology) and it is also considered that there is a lymphatic benefit given the vertical motion bouncing achieves, which could improve the overall immune function.

The sheer fun of jumping on a trampoline tends to mean people jump for longer than they might undertaking traditional forms of exercise (6% of customers book 2 hour slots) and the activity attracts many who do not undertake traditional forms of physical activity. Research highlights that individuals who view physical activity as fun rather than exercise are less likely to over-eat afterwards (The Cornell University F&B Lab).

Using the trampoline takes stress off your weight-bearing joints. Thus specific courses can be offered benefitting pensioners, the physically-challenged (autistic groups are frequent visitors at open sites), or those recuperating from accidents or injuries.

Substantial accomplishments to date

The business has raised significant external equity financing from a group of angel investors, signed with one of Europe's largest landlords (SEGRO), become Altitude Trampoline Parks (#3 in the US) Master License holder across Europe, and is achieving safety levels which we understand to be well ahead of UK and US “best practice”. It is also consummating an exclusive relationship with Knight Frank for property acquisition.

We consider our most notable achievement to be the speed of growth. Although we believe that Jump In was around 10th to market we consider that we are the most rapidly growing firm in the sector. We are early in our business journey and our most significant achievements will be when we are able to demonstrate the higher value in our operating model - which requires a more significant footprint than we have today.

More than anything we have enjoyed generating many great memories for all of the customers who come and jump with us.

Monetisation strategy

Our primary business is the operation of trampoline arenas. Open jump (pay by the hour to use 100+ trampolines) is our largest revenue stream. Group and party bookings, theme nights, fitness classes, toddler classes & dodgeball leagues complete the offering. Socks are mandatory for cleanliness and safety reasons, and most visitors consume F&B/merchandise when visiting our arena (given the intensity of the activity). Where excess space exists in a facility we aim to add soft play/complementary business lines.

We aim to add up to four fully owned parks per year plus make selective investments in licensee parks.

We expect that licensing using the Master License Agreement we have through our relationship with Altitude Trampoline Parks (#3 in the US) will provide a stable long term revenue stream. Licensing is priced at 7% of revenues & £20k commitment fee for a single site operator, and we have jurisdiction across Europe.

In time, central services will be charged out to individual parks. We will offer a national call centre for bookings and general enquiries, marketing, procurement, management reporting & bookkeeping and expect to build this out over the 2016-2017 period in line with our expanding footprint.

As mentioned above, Jump In operates under a license from Altitude Trampoline Parks, the #3 trampoline park operator in the US. Under this arrangement, Altitude provides various support services for the parks, including consulting work around design, operations and marketing, leveraging their global procurement power, and procedures and operations manuals. Some key features of this arrangement:

- Jump In pay a licensing fee to Altitude of 3% of revenues per annum from its operated parks subject to a cap. Where sublicensing occurs, which is permitted across Europe under the Master License Agreement, the revenues are shared with Altitude. The split of revenues depends on a number of factors but the maximum is 50%.

- This arrangement with Altitude has a 10 year term and Jump In is committed to originating 2 new parks per year.

- During the course of the agreement and 1 year thereafter, Jump In is not permitted to open a park under the "Jump In" brand within 10 miles of an existing park.

Use of proceeds

Depending on funds raised, proceeds will be used to invest in one or two additional parks.

Park build costs are typically £700-800k thus we would utilize asset finance to cover the funding shortfall (given an anticipated £600k raise). Should the raise substantially exceed expectations it is possible that the excess is used to redeem the existing asset finance facilities in place of £148k.

The Company currently also has an unsecured convertible investor loan of £600k of which £400k has been drawn to fund site 2 launch. Please note that the share price has been calculated on a fully diluted basis and has taken into account this convertible loan. None of the funds raised in this campaign will go towards paying down these loans. Note the business has no Directors Loans or Bank Debt outstanding.

Please email us for any further information.