Can Big Air Trampoline Park disapprove a Local Advertising Cooperative contribution rate?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
Local advertising cooperatives will be composed of all franchised and company-operated Big Air Trampoline Facilities located in a designated market area. If a Local Advertising Cooperative is established, contributions to the Local Advertising Cooperative of up to 2% of Gross Revenue may be applied towards your Individual Advertising Expense obligation. We anticipate that each franchisee will have 1 vote for each Big Air Trampoline Facility operated by the member in the designated market area. As of the date of this Franchise Disclosure Document, no Local Advertising Cooperatives have been established. There are no franchisorowned Big Air Trampoline Parks as of the date of this Franchise Disclosure Document, but if established in the future, franchisor-owned outlets could have controlling voting power on any fees that may be imposed by an advertising cooperative. We have the right to review each Cooperative's contribution rates on an annual basis and disapprove a rate of less than 1% of Gross Revenue or a rate in excess of 2% of Gross Revenue. The maximum fee or contribution rate that may be imposed by Local Advertising Cooperatives is 2% of Gross Revenue and the minimum fee or contribution rate that may be imposed by Local Advertising Cooperatives is 1% of Gross Revenue. The maximum and minimum fees that we have established are subject to change.
Source: Item 6 — OTHER FEES (FDD pages 10–15)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, Big Air Trampoline Park has the right to review and potentially disapprove the contribution rates set by Local Advertising Cooperatives. These cooperatives, if established, would consist of both franchised and company-operated Big Air Trampoline Park locations within a specific market area.
The document specifies that Big Air Trampoline Park can disapprove a contribution rate if it falls outside the range of 1% to 2% of Gross Revenue. This means that if a cooperative sets a rate lower than 1% or higher than 2% of Gross Revenue, Big Air Trampoline Park can step in and disapprove that rate. The FDD also states that the maximum fee or contribution rate that may be imposed by Local Advertising Cooperatives is 2% of Gross Revenue and the minimum fee or contribution rate that may be imposed by Local Advertising Cooperatives is 1% of Gross Revenue.
This oversight helps Big Air Trampoline Park maintain some control over advertising expenditures and ensures that franchisees are neither overcharged nor under-investing in local advertising efforts. However, the document also notes that these maximum and minimum fees are subject to change, giving Big Air Trampoline Park some flexibility in the future. As of the date of the Franchise Disclosure Document, no Local Advertising Cooperatives have been established.