What is the definition of the 'Start-Up Advertising and Promotions Expense' for a Big Air Trampoline Park franchise?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
mprovement and Franchisee shall cooperate with Franchisor in securing such rights. Franchisor may also consider such Improvements as the property and Trade Secrets of Franchisor. In return, Franchisor shall authorize Franchisee to utilize any Improvement that may be developed by other franchisees and is authorized generally for use by other franchisees.
11. ADVERTISING AND PROMOTION
- 11.1 Franchisee acknowledges that local advertising is required to advise the public of the Big Air Trampoline Business. For the first 30 days prior to Franchisee's Projected Opening Date ("Start-Up Advertising and Promotions Period") and continuing through the first 90 days after Franchisee opens Franchisee's Big Air Trampoline Business, Franchisee will spend a total of Sixty Thousand Dollars ($60,000.00) on promotional advertising, marketing, and public relations efforts within the Territory ("Start-Up Advertising and Promotions Expense"). Of the Start-Up Advertising and Promotions Expense, at least Ten Thousand Dollars ($10,000) will be spent on promotional advertising, marketing and public relations efforts within the Territory on Franchisee's grand opening. Upon the expiration of the Start-Up Advertising and Promotions Period, and during the remaining Term, Franchisee shall spend a minimum of the greater of 2% of the Gross Revenues for the preceding month or $5,000 per month ("Individual Advertising Expense") for advertising and promotion within the Territory.
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 Start-Up Advertising and Promotions Expense is defined as the total amount a franchisee will spend on promotional advertising, marketing, and public relations efforts within their territory. This expense covers the period starting 30 days before the Projected Opening Date and continues for the first 90 days after the Big Air Trampoline Park business opens.
The required spending for this Start-Up Advertising and Promotions Expense totals $60,000. Of this amount, at least $10,000 must be specifically allocated to promotional advertising, marketing, and public relations efforts related to the franchisee's grand opening. This ensures a significant initial push to create awareness and attract customers when the location first opens.
After the initial Start-Up Advertising and Promotions Period, the franchisee is then obligated to spend a minimum of the greater of 2% of the Gross Revenues for the preceding month or $5,000 per month for ongoing advertising and promotion within their territory. This ongoing expense is referred to as the Individual Advertising Expense. This ensures continued marketing efforts throughout the term of the franchise agreement.
It is important to note that certain expenditures do not qualify as local advertising unless approved in advance by Big Air Trampoline Park. These include salaries, expenses, or benefits of any employees of the franchisee, in-store materials consisting of furniture or equipment, and seminar and educational costs and expenses of the franchisee's employees. This restriction ensures that advertising funds are used for approved marketing activities that benefit the Big Air Trampoline Park brand.