Does the Gross Revenue definition for a Big Air Trampoline Park include rental income?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Royalty. 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, gross revenue does include rental income. The royalty fee, which is 6% of the previous month's gross revenue, is calculated from the total selling price of all food, beverages, services, and merchandise sold at or from the Big Air Trampoline Facility.
Gross revenue also encompasses all income of every other kind and nature related to the Big Air Trampoline Facility's operation. This explicitly includes income related to off-site parties and rental income, if any. The calculation is based on whether the income is received in cash or credit, and regardless of whether the income from credit sales has been collected.
This definition of gross revenue is important for prospective franchisees as it forms the basis for calculating royalty fees and certain advertising expenses. Franchisees should be aware that all income sources, including rentals, are subject to these calculations.