About Cloudbound Franchise
Cloudbound is a new franchise concept under parent company Cloudbound Holdings, LLC, offering opportunities since 2025.
The brand enters the market with a fresh approach to its service category, bringing innovative solutions and a modern business model to franchise owners and their customers.
The franchise fee is $60,000.
Cloudbound Franchise Cost & Fees
Minimum Investment
$1.8M
Average Investment
$2.7M
Maximum Investment
$3.6M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $60,000 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 3% of Gross Sales | National brand fund |
| Total Investment Range | $1,815,000 – $3,631,460 | Includes build-out, inventory, working capital |
The investment range of $1.8M–$3.6M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales) and marketing fee (3% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $60,000 | $60,000 |
| Lease & Security Deposits | $0 | $120,000 |
| Leasehold Improvements/Architect | $850,000 | $1,789,950 |
| Signage | $30,000 | $100,565 |
| Attractions | $350,000 | $730,330 |
| Furniture/Fixtures | $80,000 | $169,970 |
| Computer Equipment | $100,000 | $129,485 |
| Equipment and Supplies | $100,000 | $140,560 |
| Licenses, Dues, and Utility Deposits | $5,000 | $12,000 |
| Inventory | $15,000 | $22,600 |
| Travel Expenses/Pre-Opening Wages | $20,000 | $40,000 |
| Professional Fees | $4,000 | $14,000 |
| Insurance Premiums, Allocations and Other Insurance for first quarter of operations | $24,000 | $65,000 |
| Additional Funds – Three Months | $137,000 | $197,000 |
| Grand Opening Marketing Expense | $35,000 | $35,000 |
| Site Development Fee | $5,000 | $5,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 50% of the then-current Initial Franchise Fee (for full transfer); $2,500 (for select transfers) |
| Renewal Fee | 25% of the then-current Initial Franchise Fee |
| Technology Fee | Not currently charged by us, but estimated to be our costs plus 20% |
| Audit Fee | Our costs and expenses of the audit, including professional fees, travel, meals and lodging (as applicable) |
| Local Advertising Funding Requirement | $12,000 during first month of Park operations; 4% of Gross Sales thereafter |
| Transfer Fee Deposit | $15,000 |
| Extension Fee (Franchise Agreement) | 100% of then-current Initial Franchise Fee |
| Extension Fee (Multi-Unit Development Agreement) | 50% of Development Fee |
| Space Plan Fee | $350 per space plan |
| Relocation Expenses | Actual costs |
| Call Center Program Fee | Not currently charged by us, but estimated to be from $1,000 to $1,400 per month |
| Interest on Late Payments | Lesser of 18% annually or maximum rate permitted by applicable law |
| Overdue Supplier Payments | Actual costs |
| Non-Compliance Fee | $250 for each day you remain out of compliance. $2,500 per violation for failure to obtain guest waivers |
| Inspection and Compliance Reimbursement | Our actual costs, including travel and living expenses |
| Training and Assistance Fees | We reserve the right to charge $500 per day, plus travel and living expenses |
| Annual Convention Fees | Up to $1,500 per person, plus travel and living expenses |
| Maintenance Costs | Actual costs for failing or refusing to correct deficiencies at your Park |
| Product, Supply, Furniture, and Equipment Purchases and Installation of Attractions | Varies based on the products, supplies, furniture, and equipment ordered |
| Alternate Supplier Approval Costs | Reasonable costs of inspecting proposed supplier and actual costs of testing proposed products or evaluating proposed service or service provider |
| Master Insurance Program Costs | Total Cost of Risk (estimated between 2.0% and 10.0% of Gross Sales, but subject to recalculation every six to 12 months) |
| Third-Party Insurance Coverages | Actual costs |
| Quality Control Programs | Actual costs |
| Special Promotion Advertising Fees | As required |
| Audit | Understated amounts with interest; Our costs and expenses of the audit, including professional fees, travel, meals and lodging (as applicable) |
| Management Fee | 50% of Gross Sales; travel and living expenses |
| Taxes | Actual costs |
| Indemnification | Amount of our liabilities, fines, losses, damages, costs and expenses (including reasonable attorneys’ fees) |
| Costs and Attorneys’ Fees | Actual costs and expenses |
| Arbitration and Proceeding Costs | Reasonable costs and expenses, including attorneys’ fees |
| Liquidated Damages | Amount equal to the greater of: (i) $100,000; or (ii) the combined monthly average of Royalty Fees, Ad Fees, and other fees due pursuant to the Franchise Agreement paid by you during the 12 months preceding the date of termination multiplied by the number of remaining months in the Initial Term after termination (or multiplied by 12, if the Park had been open for less than 12 months upon the date of termination) |
| Reimbursement for Other Obligations and Duties | Actual costs and expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | between five and 21 days |
| Classroom Training | 16.5 |
| On-the-Job Training | 26.5 |
| Training Location | one of our Cloudbound Parks or other locations we designate |
| Additional Training | We may require you (or your Responsible Person) and/or any of your employees to attend periodic refresher training courses at such times and locations that we designate. We also may require you to pay us fees for training additional employees or new employees you have hired after your Business commences operations. At least one representative from your Park must attend annual conventions. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Typically, but not in all cases, each Protected Territory granted under a Franchise Agreement will encompass a population of at least 150,000 people. |
| Description | The Franchise Agreement grants to you the right to own and operate a single Park at a specific location. You must select the site for your Park from within the 'Protected Territory' identified in Appendix E to your Franchise Agreement. The Protected Territory will be agreed upon by you and us before your execution of the Franchise Agreement and will be based on zip codes or metes and bounds or other territory delineations we may utilize. You will not receive an exclusive territory under the Franchise Agreement. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | 25% of the then-current Initial Franchise Fee |
| Renewal Conditions | Deficiencies are corrected within a reasonable cure period we specify; you have substantially complied with the Franchise Agreement; you are in compliance with the Franchise Agreement upon providing notice to renew and on the renewal date; you remodel or relocate the Park; you provide us not less than six months nor more than 12 months’ notice prior to expiration; you pay successor initial franchise fee; and may be required to sign a Franchise Agreement with materially different terms and conditions than your original Franchise Agreement alongside guarantees and general releases. |
| Transfer Fee | 50% of the then-current Initial Franchise Fee (for full transfer); $2,500 (for select transfers) |
| Transfer Conditions | The conditions include the character, aptitude and experience of the transferee; paying all amounts owed and paying to us a $15,000 refundable fee deposit; transferee and others completing initial training and signing our then current form of franchise agreement (including personal guarantees); providing executed copies of any documents to effectuate the transfer; paying a transfer fee in the amount of 50% of the then-current franchise fee (or $2,500 for ownership interest transfers among your existing owners); you (and your Owners) signing a general release, our approval for the material terms and conditions of the transfer; the transferee’s obligations under any promissory notes or similar agreements must be subordinate to obligations due to us under the Franchise Agreement; providing evidence of notice to or approval from the landlord in connection with your lease for the premises; correcting any deficiencies of the Park or the transferee’s agreement to modernize, renovate, or upgrade the Park in accordance with our requirements; providing evidence of taking appropriate measures to effectuate the transfer (including transferring all necessary business licenses and material agreements); and executing an agreement to remain bound by certain post-termination covenants. |
| Termination for Cause | We can terminate only if you commit one of several violations. Curable defaults include failure to comply with safety/cleanliness standards (24 hrs), failure to pay us/affiliates/suppliers (10-30 days), two non-payment notices in 24 months, failure to provide Technology System access (10 days), or failure to comply with any other provision (30 days). Non-curable defaults include insolvency/bankruptcy, abandonment, unauthorized transfer, material misrepresentation, lease termination, felony conviction, unauthorized disclosure of Confidential Information, underreporting Gross Sales, repeated non-compliance, failure to pay taxes, failure to appoint manager, violation of non-compete, or failure to conduct background checks. We can also terminate if any other agreement with us/affiliates is terminated. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term, no direct or indirect involvement in any Competitive Business (family recreational centers like trampoline parks, indoor bouncing, rock climbing, miniature golf, active entertainment facilities, excluding gymnastics centers), no diversion of business/customers, no adverse effect on goodwill of Marks/System, no solicitation of our/affiliates' relationships. Post-term, for two years, no direct/indirect involvement in Competitive Business at the Park's premises, within 15 miles of the Park's premises, or within 15 miles of any other Park in operation or under construction. Also, no solicitation of relationships or activities adversely affecting goodwill. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | You (or your Responsible Person) agree to personally manage and operate your Park and will not, without our prior written consent, delegate your (or your Responsible Person’s) authority and responsibility with respect to management and operation. You (or your Responsible Person) must exert best efforts toward the development and operation of your Park and all other Parks you own and, absent our prior approval, may not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments or which may otherwise conflict with your obligations. Your Park must be managed by you (or your Responsible Person) or by an on-site general manager or assistant manager or an hourly team lead who has completed all appropriate training programs to our satisfaction. |
| Required Suppliers | Currently our affiliate, Sky Zone, LLC, is the only Approved Supplier for the purchase and installation of the Attractions and their replacement parts for your Park. Additionally, we and our affiliates are also the only Approved Supplier for certain supplies, including but not limited to grip socks, wristbands, party supplies, food preparation items, and sanitation supplies; certain furniture, fixtures, and equipment to be used in developing and operating your Park, including but not limited to chairs, tables, lockers, food preparation appliances, and décor items; certain promotional materials, merchandise, and other Cloudbound™ branded items you will use in the marketing and promotion of your Park. We and our affiliates reserve the right to be the only approved supplier of the Technology System for use in your Park. |
| Supply Restrictions | You must build and operate the Park according to our standards and specifications as we may establish from time to time, which includes purchasing approved products, services, supplies, inventory, equipment, and materials required for the operation of the Park from manufacturers, suppliers or distributors we approve. We reserve the right to designate a primary or single source for certain products, services, and supplies, and we or an affiliate may be that single source. |
| Franchisor Revenue from Suppliers | We and our affiliates reserve the right to receive discounts, rebates, commissions, promotional allowances and other benefits or other consideration from Approved Suppliers in connection with franchisee purchases of products and services. We and our affiliates may retain and use all amounts received from suppliers and distributors, whether based on your or other franchisees’ actual or prospective dealings with them, without restriction for any purposes we or our affiliates deem appropriate. We also may derive revenue from any items we or any affiliate sells directly to you by charging you more than our or the affiliate’s cost. We have not offered franchises for Parks before the issuance date of this Disclosure Document. Accordingly, we have not derived any revenues from required purchases by our franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee any of your notes, leases, or other obligations. |
Cloudbound Franchise Earnings — Item 19
Cloudbound does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Cloudbound does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Cloudbound Litigation & Risk Flags
Clean Litigation RecordCloudbound has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Cloudbound System Growth
Total Units
0
Franchised
0
Company-Owned
0
Cloudbound currently operates 0 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 0 | 0 |
| 2023 | 0 | 0 | 0 |
| 2024 | 0 | 0 | 0 |
Transfers: 0 | Closures: 0
Cloudbound Franchise — FAQ
The total investment to open a Cloudbound franchise ranges from $1,815,000 to $3,631,460, per their Franchise Disclosure Document. This includes the initial franchise fee of $60,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Cloudbound charges a royalty fee of 6% of Gross Sales of gross sales, plus a 3% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Cloudbound Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Cloudbound to ensure you have the most up-to-date version.
Cloudbound does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Cloudbound has been franchising since 2025. The FDD shows an investment range of $1,815,000-$3,631,460, a 6% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $60,000 and the total investment ranges from $1,815,000 to $3,631,460 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Cloudbound and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Cloudbound or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com