Kangaroo Bob’s revenue is derived from walk-in admissions, events/parties and retail. The walk-in admissions are families paying for their children to have access to our facility for $10.00 a day. The typical stay is 1 hour per family. During the walk-in experience the child will have a choice to play our structured play games, which take place every 15 minutes, or play on our inflatables. The event revenue comes from families hosting their child’s birthday party, outsourced birthday parties are a $3 billion industry, elementary schools, daycares, religious organizations, youth sports organizations, and corporations.
Kangaroo Bob’s business concept is a combination of the best characteristics of a Family Entertainment/Amusement Centers (FEC’s) and Children’s Learning Centers (CLC’s) Businesses. FEC’s are typically arcades with food and beverage. FEC’s are located in 25,000 to 100,000 square foot facilities and will generate $1,500,000 to $10,000,000 annually in revenue. Unfortunately, FEC’s have high start-up costs, high entertainment turnover costs, the food operation is tough to scale, and there are low barriers to entry because none of the games are proprietary.
Most CLC’s mantra is to expedite the development of motor skills for toddlers. CLC’s have their own proprietary curriculum which enables them to teach these skills to toddlers. This curriculum typically creates high barriers to entry for CLC’s. CLC’s are in 1,500 to 3,500 square feet of space and their revenue is derived by memberships and events. The memberships and events enable CLC’s to have very predictable expenses but limited revenue. Plus, they are not fun for adults and the adults must be fully engaged in order for the children to get anything out of the session.
Kangaroo Bob’s business concept has combined the best characteristics of an FEC and CLC due to its high IRR, high barriers to entry, and scalable operation. These characteristics enables Kangaroo Bob’s to provide franchisees an amusement product with similar economics of an FEC, while delivering parents the value of a CLC.
Kangaroo Bob’s high barriers to entry were built through patenting the process of how we teach life lessons to children, the athletic redemption process, the Teamwork Curriculum, and the game creation and installation process. Kangaroo Bob’s scalability is due to the fact that the business is a simple operation. Kangaroo Bob’s has to manage walk-ins, parties, classes and some retail but NO FOOD PREPERATION. Every new product and service is a derivative of the walk-in and party experience.

