If a Local Advertising Cooperative is established for Big Air Trampoline Park, how is it composed?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Local Advertising Cooperatives. Local advertising cooperatives will be composed of all franchised and company-operated Big Air Trampoline Facilities located in a designated market area. If a Local Advertising Cooperative is established, contributions to the Local Advertising Cooperative of up to 2% of Gross Revenue may be applied towards your Individual Advertising Expense obligation. We anticipate that each franchisee will have 1 vote for each Big Air Trampoline Facility operated by the member in the designated market area. As of the date of this Franchise Disclosure Document, no Local Advertising Cooperatives have been established. There are no franchisorowned Big Air Trampoline Parks as of the date of this Franchise Disclosure Document, but if established in the future, franchisor-owned outlets could have controlling voting power on any fees that may be imposed by an advertising cooperative. We have the right to review each Cooperative's contribution rates on an annual basis and disapprove a rate of less than 1% of Gross Revenue or a rate in excess of 2% of Gross Revenue. The maximum fee or contribution rate that may be imposed by Local Advertising Cooperatives is 2% of Gross Revenue and the minimum fee or contribution rate that may be imposed by Local Advertising Cooperatives is 1% of Gross Revenue. The maximum and minimum fees that we have established are subject to change.
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, a Local Advertising Cooperative will include all franchised and company-operated Big Air Trampoline Park locations within a specific market area. Each franchisee is expected to have one vote for each Big Air Trampoline Park they operate in that area. As of the FDD's issue date, no such cooperatives have been established. However, the document notes that if franchisor-owned outlets are established in the future, they could potentially have controlling voting power regarding any fees imposed by the cooperative.
The contribution to the Local Advertising Cooperative can be up to 2% of Gross Revenue, which may then be applied towards the franchisee's Individual Advertising Expense obligation. Big Air Trampoline Park retains the right to review each Cooperative's contribution rates annually and can disapprove rates that are less than 1% or exceed 2% of Gross Revenue.
For a prospective franchisee, this means that while there are currently no local advertising cooperatives, they may be formed in the future. If one is established in their market, they will be required to participate and contribute up to 2% of their Gross Revenue. It is important to note that Big Air Trampoline Park retains significant control over the cooperative's financial decisions, including the ability to influence contribution rates and potentially exert controlling voting power through company-owned locations. Franchisees should consider this potential influence when evaluating the overall advertising strategy and costs associated with the franchise.