factual

For a Big Air Trampoline Park franchise, what conditions must be met for transfer fees to be collectable?

Big_Air_Trampoline_Park Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Transfer Fees. Transfer fees are collectable only to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

According to the 2025 Big Air Trampoline Park Franchise Disclosure Document, transfer fees are only collectable if they reflect the franchisor's reasonable estimated or actual costs in completing the transfer. This means that Big Air Trampoline Park cannot charge an arbitrary or inflated transfer fee.

For a prospective franchisee, this is important because it protects them from being overcharged during a transfer. If a franchisee decides to sell their Big Air Trampoline Park franchise, the transfer fee must be justifiable based on the actual costs incurred by the franchisor.

This condition is in place to prevent franchisors from profiting excessively from franchise transfers and ensures that fees are fair and reasonable. Franchisees should ensure they understand what costs are included in the transfer fee and request documentation to support the amount charged by Big Air Trampoline Park.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.