How to Finance a Hyper Kidz Franchise: Indoor Playground Costs
By Chris Cornella
A Hyper Kidz franchise loan has to fund one of the larger formats in children’s entertainment: an indoor playground of roughly 11,000 to 16,000 square feet built around a multi-level play structure, party rooms and a concession stand. According to the brand’s 2024 Franchise Disclosure Document, the estimated initial investment for a single unit runs from $751,633 to $1,800,333, so most owners pair personal cash with an SBA or conventional loan.
This article explains what Hyper Kidz is, how the investment breaks down, what the franchisor asks of new owners and how SBA 7(a), SBA 504, conventional and equipment financing can fit. US Professional Funding is not affiliated with, sponsored by or endorsed by Hyper Kidz; the name is used only to describe the business. Figures from the franchisor’s disclosure document can change, loan programs vary, and every loan is subject to approval. Nothing here is legal, tax or investment advice.
Hyper Kidz Franchise Loan at a Glance
- Franchisor: Boomerang Franchise LLC, a Maryland limited liability company that began offering franchises in October 2018
- Total investment (2024 FDD): $751,633 to $1,800,333 for a single unit; $803,633 to $1,852,833 under a multi-unit development agreement
- Initial franchise fee: $42,500, according to the franchisor’s cost and fees page
- Advertising fee: 1% of sales, per the franchisor’s cost and fees page
- Cash on hand: $200,000 to $300,000, per the franchisor
- Net worth: $1.5 million to $2 million, per the franchisor
- Facility: about 11,000 to 16,000 square feet
- Franchisor financing: none offered directly, according to the franchisor
- SBA Franchise Directory: listed as Hyper Kidz (code S4192), with notes on the lease assignment and lien position
What Is Hyper Kidz?
Hyper Kidz is an indoor playground concept that grew out of Maryland. Its franchise brochure describes play space designed for children from 6 months to 10 years old, with areas that accommodate kids up to 13. The centerpiece in many units is the “Big Kidz Zone,” a three-story play structure of about 3,000 square feet, surrounded by themed play areas, three private party rooms and a concession and souvenir stand.
Revenue comes from several streams: walk-in play, birthday party packages, private room rentals and food and merchandise sales. The franchisor trains new owners at a company-owned location in Columbia, Maryland, and its brochure says a company representative is on site during the first week a new unit opens.
How lenders see the concept. A lender looks at a Hyper Kidz deal as a family entertainment center with heavy build-out and play equipment, a big-box lease and revenue that leans on weekends, school breaks and party bookings. The system is younger than many restaurant or fitness brands, so the borrower’s own liquidity, experience and the quality of the site carry a lot of weight.
Hyper Kidz Franchise Costs
Sizing a Hyper Kidz franchise loan starts with Item 7. The 2024 Franchise Disclosure Document sets the single-unit investment at $751,633 to $1,800,333, including $50,000 paid to the franchisor or its affiliate. The wide spread reflects how much a large indoor space can vary in rent, landlord contributions and construction scope. The line-item ranges appear in the Item 7 table, and you should copy them into your loan request exactly as written.
Initial franchise fee
The franchisor’s cost and fees page lists an initial franchise fee of $42,500 and notes a veteran discount. Item 5 of the current disclosure document controls, so confirm the fee, when it is due and whether any part is refundable.
Lease, build-out and the facility
The brochure targets roughly 11,000 to 16,000 square feet. Space this large usually means a former big-box store, a strip-center anchor or a flex building with clear ceiling height for a multi-level play structure. Build-out can include flooring and padding, family restrooms, party rooms, a concession area, fire suppression and HVAC. Landlord tenant-improvement allowances can shift a large part of this cost, which is one reason the Item 7 range is so wide.
Play structures and equipment
The custom play structure and themed attractions are the core assets. Add party room furniture, concession equipment, point-of-sale and check-in systems, security cameras, signage and cleaning equipment. Lenders treat custom-installed play equipment as having limited resale value, which affects collateral coverage.
Opening costs and working capital
Budget for pre-opening payroll, training travel to Maryland, insurance, deposits, grand opening marketing and opening inventory for the concession stand. The franchisor’s brochure says new owners are expected to open within 6 to 9 months of signing, so plan for rent and loan payments during construction before revenue starts.
Item 7 categories to pull from the disclosure document:
- Initial franchise fee and any other amounts paid to the franchisor (totaling $50,000 for a single unit)
- Real estate, rent and security deposits
- Leasehold improvements and construction
- Play structure, attractions and furniture
- Computer, point-of-sale and security systems
- Signage
- Concession equipment and opening inventory
- Training travel and expenses
- Insurance, licenses and professional fees
- Grand opening marketing
- Additional funds for the initial operating period
Ongoing Fees and How They Affect Your Loan
The franchisor’s cost and fees page lists an advertising fee of 1%. The royalty rate, any local marketing requirement, technology fees and transfer or renewal fees appear in Item 6 of the disclosure document. Franchisor materials have shown more than one royalty figure over time, so rely only on the current Item 6.
When underwriting a Hyper Kidz franchise loan, lenders deduct royalties and marketing fees from projected revenue before they calculate debt service coverage. A large playground also carries high fixed costs, so projections should show rent, staffing and loan payments covered in slower months, not only on busy weekends.
Franchisor Requirements for New Owners
The franchisor’s cost and fees page lists cash on hand of $200,000 to $300,000 and a net worth of $1.5 million to $2 million. Those are the franchisor’s thresholds; a lender will run its own analysis and may require additional reserves after the down payment.
The approval process typically includes an inquiry, a review of the disclosure document, a Discovery Day at the company-owned location in Columbia, Maryland, a financial review and signing. The brochure says each owner receives a protected territory and, at closing, a first right of refusal on adjacent territories.
Ways to Own a Hyper Kidz
A new unit. Most owners will finance a new build-out. Expect the lender to review the lease, the construction budget, the contractor and the franchisor’s site approval before closing.
A multi-unit development agreement. The 2024 Franchise Disclosure Document shows a multi-unit investment of $803,633 to $1,852,833, including $92,500 paid to the franchisor. Lenders usually finance one unit at a time.
Buying an existing location. If a franchised unit is for sale, the franchisor must approve the transfer and the landlord must consent to the lease assignment. Financing is based on the location’s historical results rather than projections. Our article on buying a franchise resale covers the process.
Hyper Kidz Franchise Loan Options
SBA 7(a) loans
An SBA 7(a) loan is the most flexible fit for a leased playground because it can cover the franchise fee, leasehold improvements, play equipment, opening costs and working capital in one loan.
SBA 504 loans
If you plan to buy the building, an SBA 504 loan can finance the real estate and long-lived fixtures with long-term fixed-rate debt. Note the SBA directory comment below about the lease assignment when real estate secures the loan.
Conventional term loans
Borrowers with strong liquidity and collateral may use conventional business loans, especially for a second unit or to refinance after the first unit stabilizes.
Equipment financing
The brochure says the franchisor has vendor relationships for equipment financing. You can also finance play structures, party room furniture and concession equipment through our family entertainment equipment financing, which can preserve cash for the opening.
Working capital and lines of credit
Indoor playgrounds often see peaks on rainy days, in winter and during school breaks and quieter stretches in nice weather. A working capital line of credit helps smooth payroll and rent between peaks.
Seller financing on resales
On a resale, a seller may agree to carry part of the price. Seller notes are typically subordinate to the senior loan, and SBA rules may limit how they are structured.
SBA Loans for Hyper Kidz Franchisees
The SBA guarantees part of loans made by participating lenders, and the 7(a) program currently has a $5 million maximum (program rules can change). For franchises, the lender checks the SBA Franchise Directory to confirm the brand’s agreements meet SBA eligibility rules.
Hyper Kidz is listed on the SBA Franchise Directory under code S4192. The listing carries two notes. First, when the real estate where the business operates will secure the SBA-guaranteed loan, the franchisor’s Collateral Assignment of Lease may not be executed; in plain terms, the lease-assignment form does not apply when the owner is pledging the property itself. Second, the lender or CDC must secure the appropriate lien position on all collateral under the SBA’s standard operating procedures, so franchisor documents cannot push the lender’s lien behind other claims.
SBA application tips. Bring the full disclosure document and franchise agreement, a signed or proposed lease, the contractor’s budget, personal financial statements and tax returns, and a business plan with month-by-month projections. Our SBA loans for family entertainment centers article explains what underwriters ask for.
How Lenders Evaluate a Hyper Kidz Deal
Personal credit and financial history
Lenders review your credit report, debts and payment history.
Net worth and liquidity
Expect the lender to verify the cash you will inject and the reserves that remain afterward. The franchisor’s own liquidity and net worth thresholds are a starting point.
Industry and management experience
Experience in family entertainment, child care, retail or hospitality management helps. If you lack it, show the general manager you plan to hire and the franchisor’s training plan.
Business plan and projections
Model walk-in play, memberships or passes if offered, birthday parties across three party rooms, and concession sales. Show weekday versus weekend patterns, school-year versus summer differences and the staffing needed for safety.
The FDD and franchise agreement
Lenders read Items 5, 6, 7, 10, 17 and 20, plus whether the document includes financial performance representations in Item 19. Our guide to reading an FDD for financing walks through each one.
The site and lease
A large lease is a long commitment. Lenders want the lease term, including options, to cover the loan term, and they will review co-tenancy, exclusivity and the landlord’s improvement allowance. Read our article on the family entertainment center lease before you sign.
Historical financials for resales
For an existing unit, expect requests for tax returns, profit and loss statements and party booking records.
Play Equipment and Safety Deep Dive
The play structure is custom-designed and installed, so it rarely has the resale value of standard equipment. Lenders may finance it as part of leasehold improvements rather than as standalone collateral. Ask which vendors are approved, what inspections apply and how often padding, netting and attractions need replacement, and budget for those refresh costs.
Lenders also require general liability coverage before closing.
Multi-Unit Growth and Development Agreements
Hyper Kidz offers a multi-unit development agreement, and the franchisor grants a first right of refusal on adjacent territories. A lender financing a second unit will look at the first unit’s results, your remaining liquidity and the management team that will run both sites. Our article on multi-unit franchise financing explains how lenders sequence loans across a development schedule.
Real-World Scenarios
A parent-turned-owner. A former corporate manager with savings and home equity buys a single territory. An SBA 7(a) loan covers the build-out and play structure, with equipment financing on the concession setup to preserve cash.
An existing entertainment operator. An owner of a trampoline or arcade business adds a Hyper Kidz unit. The lender gives credit for industry experience and uses conventional financing backed by the existing business.
A building purchase. An investor buys a vacant retail box and uses an SBA 504 loan for the real estate, with a separate 7(a) loan for the franchise fee, equipment and working capital.
Common Mistakes to Avoid
- Underestimating construction and permitting time for a large space
- Signing a lease before lender and franchisor review
- Building projections only on peak weekends
- Using all your cash for the down payment and leaving no reserves
- Ignoring future refresh costs for play equipment
See our full list of entertainment center loan mistakes.
Next Steps to Finance Your Hyper Kidz Franchise
Step 1: Request and read the current disclosure document. Focus on Items 5, 6, 7 and 17.
Step 2: Confirm your liquidity and net worth. Compare them with the franchisor’s thresholds.
Step 3: Estimate your payment. Use our SBA loan calculator to test different loan sizes.
Step 4: Identify a site. Look for space that fits the 11,000 to 16,000 square foot target.
Step 5: Build your business plan. Include every Item 7 line and realistic seasonality.
Step 6: Talk with a financing specialist. Compare SBA 7(a), 504, conventional and equipment financing.
Step 7: Coordinate approvals. Align franchisor approval, the lease and loan closing.
Hyper Kidz Franchise Loan FAQs
How much does a Hyper Kidz franchise cost?
According to the 2024 Franchise Disclosure Document, the estimated initial investment for a single unit is $751,633 to $1,800,333.
What is the Hyper Kidz franchise fee?
The franchisor’s cost and fees page lists $42,500. Confirm the current amount in Item 5.
What royalty does Hyper Kidz charge?
The royalty is listed in Item 6 of the current disclosure document. Use that figure in your projections.
How much cash do I need?
The franchisor lists cash on hand of $200,000 to $300,000 and a net worth of $1.5 million to $2 million.
Can I get an SBA loan for a Hyper Kidz?
The brand is listed on the SBA Franchise Directory under code S4192, which simplifies the eligibility review. Approval depends on the borrower, the site and the lender.
Does Hyper Kidz offer financing?
The franchisor says it does not offer financing directly, though it cites vendor relationships for equipment financing. Item 10 of the disclosure document controls.
How large is a Hyper Kidz location?
The franchise brochure targets about 11,000 to 16,000 square feet.
Can I open more than one location?
Yes. A multi-unit development agreement is available, and the 2024 disclosure document gives a separate investment range for it.
How long does it take to open?
The franchisor’s brochure targets opening within 6 to 9 months of signing.
How long is the franchise term?
The term and renewal rights are in Item 17. Lenders generally want the franchise and lease terms to cover the loan term.
Final Thoughts
A Hyper Kidz franchise loan finances a large, equipment-heavy indoor playground with high fixed costs and strong seasonal swings. Start with the current disclosure document, choose a site that fits the footprint and build a budget with enough reserves to carry the business through construction and slower months.
US Professional Funding helps owners finance franchise start-ups, resales, equipment and working capital. Learn more about our franchise financing and family entertainment center financing.
