When are Gross Revenues deemed received by a Big Air Trampoline Park franchisee?

According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, Gross Revenues are considered received by the franchisee when the services or products from which they are derived are delivered or rendered, or when the relevant sale takes place, whichever comes first. This applies regardless of whether the franchisee has actually received final payment, such as collection on a customer's personal check.

For a prospective Big Air Trampoline Park franchisee, this definition is important because it dictates when revenue is recognized for the purpose of calculating royalty fees and other payments to the franchisor. Even if a customer pays with a check that hasn't cleared or uses a payment plan, the revenue is still counted at the time of service or sale. This could impact the franchisee's cash flow management, as they are obligated to remit fees on revenue that hasn't necessarily been collected yet.

Furthermore, the FDD specifies that Gross Revenues consisting of property, Products or Services shall be valued at the retail prices applicable and in effect at the time that they are received. This means that if a Big Air Trampoline Park franchisee barters services or products, the revenue is calculated based on the standard retail price of those items. Franchisees should keep detailed records of all transactions, including those involving non-cash payments, to accurately report Gross Revenues and avoid discrepancies with the franchisor.