How is 'Gross Revenue' defined for a Big Air Trampoline Park franchise?

According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, Gross Revenue is a critical figure, as it is used to calculate royalty fees, advertising expenses, and other fees payable to the franchisor. Gross Revenue is defined as 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. This revenue includes both cash and credit transactions, regardless of whether the credit has been collected.

For a prospective Big Air Trampoline Park franchisee, understanding this definition is crucial because it directly impacts the amount of royalties and other fees owed to the franchisor. The royalty fee is 6% of the previous month's Gross Revenue. Additionally, franchisees must spend the greater of 2% of Gross Revenue or $5,000 per month on individual advertising expenses. A National Marketing and Promotions Fee is also assessed as a percentage of Gross Revenue, starting at 1% in January 2025 and potentially increasing to 3%.

The comprehensive nature of the Gross Revenue definition means that franchisees must accurately track all sources of income, including sales of food, beverages, merchandise, services, off-site parties, and rental income. Failure to accurately report Gross Revenues can result in the franchisor debiting the franchisee's account based on previous reporting periods or information retrieved from approved computer systems. Franchisees should consult the Franchise Agreement for a complete definition of Gross Revenue to ensure compliance and avoid potential penalties.