factual

How are contributions to a Big Air Trampoline Park Cooperative credited?

Big_Air_Trampoline_Park Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisee's contributions to a Cooperative will be credited to Franchisee's Individual Advertising Expense requirements set out in Section 11.1 up to a maximum of 2% of Gross Revenues.

Source: Item 23 — RECEIPT (FDD pages 53–255)

What This Means (2025 FDD)

According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, a franchisee's contributions to a Local Advertising Cooperative will be credited towards their Individual Advertising Expense requirements, up to a maximum of 2% of Gross Revenues. This means that if a Big Air Trampoline Park franchisee is required to spend a certain percentage of their gross revenue on local advertising, their contributions to the cooperative will count towards fulfilling that requirement.

This arrangement benefits the franchisee by allowing them to pool their advertising funds with other franchisees in the same designated marketing area (DMA), potentially leading to more effective and coordinated advertising campaigns. It also ensures that the franchisee receives credit for their contributions towards the cooperative's advertising efforts, reducing their individual advertising expenses. However, the credit is capped at 2% of Gross Revenues, so any contributions exceeding that amount will not be credited towards the franchisee's individual advertising obligations.

It's important to note that the Franchisor has significant control over the Cooperative, including the right to approve the contribution rate, control the funds, and even dissolve or merge the Cooperative. The Franchisor also reserves the right to seek reimbursement from the Cooperative for administrative costs. Franchisees are required to join and actively support any Cooperative established in their DMA and make contributions according to the payment schedule approved by the Franchisor.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.