Does the Big Air Trampoline Park FDD make any provisions for federal income taxes?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
r in advertising as provided herein) in the name of, or on behalf of, the other party; neither party hereto shall be obligated by, nor have any liability for, any agreements, representations or warranties made by the other (except by Franchisor in advertising as provided herein) nor shall Franchisor be liable for any damages to any person or property, directly or indirectly, arising out of the operation of Franchisee's Big Air Trampoline Business, whether caused by Franchisee's negligent or willful action or failure to act.
- 13.3 Franchisor shall have no liability for Franchisee's obligations to pay any third parties, including without limitation, any product vendors, or any value added, sales, use, service, occupation, excise, Gross Revenues, income, property or other tax levied upon Franchisee, Franchisee's property, the Big Air Trampoline Business or upon Franchisor in connection with the sales made or business conducted by Franchisee (except any taxes Franchisor is required by law to collect from Franchisee with respect to purchases from Franchisor).
14. RESTRICTIVE COVENANTS
- 14.1 Franchisee acknowledges and agrees that:
- (a) Franchisee's entire knowledge of the operation of the Big Air Trampoline Business, the System, and the concepts and methods of promoting the Big Air Trampoline Business hereunder, that it has now or obtains in the future, is derived from Franchisor's
Confidential Information and Trade Secrets.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
The 2025 Big Air Trampoline Park Franchise Disclosure Document addresses the franchisee's responsibility for taxes. Specifically, Big Air Trampoline Park franchisees are responsible for paying all debts and taxes connected to their Big Air Trampoline Business when due, unless they are contesting those debts or taxes in good faith. This includes federal income tax. The franchisee is responsible for filing their own tax reports. Big Air Trampoline Park will not be held liable for the franchisee's tax obligations.
Furthermore, the FDD states that Gross Revenues, from which income taxes are derived, do not include the amount of any tax imposed by any federal, state, municipal, or other governmental authority directly on sales and collected from customers, provided that the amount of any such tax is shown separately and in fact paid by Franchisee to the appropriate governmental authority. Gross Revenues also do not include all customer refunds, valid discounts and coupons, and credits made by the Big Air Trampoline Business; exclusions will not include any reductions for credit card user fees, returned checks or reserves for bad credit or doubtful accounts.
This means that franchisees must manage their own tax obligations and ensure compliance with all applicable tax laws. Franchisees should consult with a tax professional to ensure they understand their tax responsibilities and to properly account for income and deductions related to their Big Air Trampoline Park business. Franchisees should also ensure they obtain all required permits and licenses required by federal, state and local laws.