May Big Air Trampoline Park derive revenue from franchisee purchases or leases in the future?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
As of the date of this Franchise Disclosure Document we have not received any referral fees from our approved or designated suppliers. As of the date of this Disclosure Document none of our officers own an interest in any approved supplier. During 2024, neither we or our affiliates derived any revenue based on the required purchases or leases by our franchisees. In the future, we may derive revenue from your purchases or leases of goods, services, supplies, fixtures, equipment, inventory and Products from approved suppliers, which may include us or our affiliates. The precise basis by which we may derive revenue in the future is undetermined at this time. If we derive revenue in the future from your purchases or leases of goods, services, supplies, fixtures, equipment, inventory and Products from our approved or designated suppliers and distributors, the precise basis by which we will do so will be disclosed to you. It is a material breach of your Franchise Agreement if you buy Products, equipment, supplies, fixtures, inventory, goods or services from anyone other than our designated or approved suppliers or distributors without our prior written approval. If you desire to use suppliers other than those which have been approved by us, you must submit your request to us in writing. We will then review the request and notify you of our approval or disapproval within 30 days.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–24)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, the company may derive revenue from franchisee purchases or leases in the future. While Big Air Trampoline Park states that neither they nor their affiliates derived any revenue from required franchisee purchases or leases during 2024, they reserve the right to do so in the future. This revenue could come from purchases or leases of goods, services, supplies, fixtures, equipment, inventory, and products from approved suppliers, which may include Big Air Trampoline Park or its affiliates. The exact method for deriving this revenue is currently undetermined but will be disclosed to franchisees if implemented.
Franchisees are obligated to purchase or lease required equipment, supplies, fixtures, inventory, goods, services, and products from Big Air Trampoline Park or its approved suppliers and distributors. Unauthorized purchases from non-approved sources constitute a material breach of the Franchise Agreement. Franchisees can request approval for alternative suppliers, and Big Air Trampoline Park will review such requests within 30 days, based on criteria like product quantity, quality, competitive pricing, production capability, dependability, and supplier reputation. Big Air Trampoline Park may require franchisees to cover the costs of investigating and approving new suppliers to ensure they meet the company's standards.
Big Air Trampoline Park also negotiates purchase arrangements with suppliers and distributors and reserves the right to receive rebates on volume discounts from purchases that they may resell to franchisees. There are no caps or limitations on the maximum amount of rebates Big Air Trampoline Park may receive from suppliers and distributors as a result of franchisee purchases. This means that the potential revenue Big Air Trampoline Park could derive from these rebates is uncapped and dependent on the volume of purchases made by franchisees through approved suppliers.