What is included in the definition of 'Gross Revenues' for a Big Air Trampoline Park franchise?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
(j) "Gross Revenues" means the total of all receipts derived from all sales of products and services at your Big Air Trampoline Business, including sales made away from your Big Air Trampoline Facility, insurance claims for lost profits to the extent a claim is paid by the insurer, and all other products and services sold or performed by or for you or your Big Air Trampoline Business or by means of the business conducted under this Agreement, whether the receipts are evidenced by cash, credit, checks, gift certificates, scrip, coupons, services, property or other means of exchange. Gross Revenues do not include:
(i) the amount of any tax imposed by any federal, state, municipal or other governmental authority directly on sales and collected from customers, provided that the amount of any such tax is shown separately and in fact paid by Franchisee to the appropriate governmental authority; and
(ii) all customer refunds, valid discounts and coupons, and credits made by the Big Air Trampoline Business (exclusions will not include any reductions for credit card user fees, returned checks or reserves for bad credit or doubtful accounts).
Gross Revenues shall be deemed received by Franchisee at the time the Services or Products from which they were derived are delivered or rendered or at the time the relevant sale takes place, whichever occurs first, regardless of whether final payment (e.g., collection on a customer's personal check) actually has been received by Franchisee. 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.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, Gross Revenues are defined as the total income from all sales of products and services at your Big Air Trampoline Business. This includes sales made away from the primary facility, insurance claims paid for lost profits, and income from any other products or services sold by the franchisee's Big Air Trampoline Business. The form of payment is irrelevant, as Gross Revenues include receipts evidenced by cash, credit, checks, gift certificates, scrip, coupons, services, property, or other means of exchange.
However, the definition of Gross Revenues for Big Air Trampoline Park excludes certain items. Specifically, any sales tax collected directly from customers and paid to a governmental authority is excluded, provided that the tax amount is shown separately. Additionally, customer refunds, valid discounts and coupons, and credits made by the Big Air Trampoline Business are also excluded from Gross Revenues. It is important to note that reductions for credit card user fees, returned checks, or reserves for bad debt are not considered exclusions.
Gross Revenues are considered received when the services or products are delivered or rendered, or when the sale takes place, whichever comes first. This is regardless of whether the franchisee has actually received final payment. If Gross Revenues are received in the form of property, products, or services, they are valued at the retail prices in effect at the time they are received. This definition is important because many of the franchisee's financial obligations to Big Air Trampoline Park, such as royalty fees and advertising fees, are calculated as a percentage of Gross Revenues.