Who controls the Cooperative Funds for a Big Air Trampoline Park Local Advertising Cooperative?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
ich the Big Air Trampoline Facility is located encompasses Big Air Trampoline Facilities operated by at least two other franchisees or Big Air Trampoline Facility operators (including Franchisor's parent or Affiliates), the owners in the DMA will, at Franchisor's request and with Franchisor's advice and assistance, form a cooperative advertising association among themselves ("Local Advertising Cooperative" or "Cooperative") for the purpose of jointly advertising and promoting their Big Air Trampoline Facilities. Franchisor shall have control of all Cooperative Funds and expenditures of such funds shall require Franchisor's advanced approval.
- (a) If, in connection with a Cooperative's formation or functioning, its members are unable to reach agreement with respect to any disagreement over organization, administration, "spill" policy, contribution waivers or exceptions, budget or other matters that the members cannot resolve within 45 days, the issue will be referred to Franchisor for resolution. Franchisor's decision with respect to the issue's resolution will be binding on all members of the Cooperative.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, the franchisor maintains control over the Cooperative Funds within a Local Advertising Cooperative. Specifically, the franchisor has control of all Cooperative Funds, and any expenditure of these funds requires the franchisor's advance approval.
If members of the Cooperative cannot agree on issues such as organization, administration, contribution waivers, budget, or other matters within 45 days, the issue is referred to the franchisor for resolution. The franchisor's decision is then binding on all members of the Cooperative. The franchisor also reserves the right to review each Cooperative's contribution rate annually, with the ability to disapprove rates less than 1% or exceeding 2% of Gross Revenues.
Furthermore, the franchisor can seek reimbursement from the Cooperative for reasonable administrative costs, salaries, and overhead related to the implementation and administration of the Cooperative and its marketing programs. The franchisor also has the sole right to form, change, dissolve, or merge any Cooperative at its discretion. This level of control gives Big Air Trampoline Park significant oversight over local advertising efforts and expenditures, ensuring brand consistency and strategic alignment.