Where can I find the complete definition of Gross Revenue for a Big Air Trampoline Park franchise?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
The Royalty is 6% of the previous month's Gross Revenue. "Gross Revenue" means the total selling price of all food, beverages, services and merchandise sold at or from your Big Air Trampoline Facility and all income of every other kind and nature related to the Big Air Trampoline Facility's operation (including income related to off-site parties and rental income, if any), whether for cash or credit and regardless of collection in the case of credit (See Franchise Agreement, Definitions Section, for a complete definition of Gross Revenue).
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, the complete definition of "Gross Revenue" can be found within the Definitions Section of the Franchise Agreement. Item 6 of the FDD provides a summary definition of Gross Revenue, explaining that it encompasses the total selling price of all food, beverages, services, and merchandise sold at or from your Big Air Trampoline Facility. It also includes all income of every other kind and nature related to the Big Air Trampoline Facility's operation, including income related to off-site parties and rental income, if any, whether for cash or credit and regardless of collection in the case of credit.
Understanding the complete definition of Gross Revenue is crucial for Big Air Trampoline Park franchisees because several fees, including the royalty fee (6% of Gross Revenue), individual advertising expense (the greater of 2% of Gross Revenue or $5,000 per month), local advertising cooperative fees (if established, between 1% and 2% of Gross Revenue), and the national marketing and promotions fee (initially 1% of Gross Revenue, potentially increasing to 3%), are calculated based on this figure.
Therefore, it is essential for prospective franchisees to carefully review the Franchise Agreement to fully understand what constitutes Gross Revenue. This will ensure accurate calculation and payment of fees to Big Air Trampoline Park, as well as proper financial planning and management of the franchise.