What is the Individual Advertising Expense for a Big Air Trampoline Park franchise?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
the first 90 days after Franchisee opens Franchisee's Big Air Trampoline Business, Franchisee will spend a total of Sixty Thousand Dollars ($60,000.00) on promotional advertising, marketing, and public relations efforts within the Territory ("Start-Up Advertising and Promotions Expense"). Of the Start-Up Advertising and Promotions Expense, at least Ten Thousand Dollars ($10,000) will be spent on promotional advertising, marketing and public relations efforts within the Territory on Franchisee's grand opening. Upon the expiration of the Start-Up Advertising and Promotions Period, and during the remaining Term, Franchisee shall spend a minimum of the greater of 2% of the Gross Revenues for the preceding month or $5,000 per month ("Individual Advertising Expense") for advertising and promotion within the Territory. Franchisee may not advertise outside its Territory without Franchisor's approval, which may be granted or withheld in Franchisor's sole discretion. Franchisee will receive dollar-for-dollar credit up to 2% of Gross Revenues for the preceding month against this obligation for all contributions that Franchisee makes to
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to the 2025 FDD, after the initial start-up advertising period, a Big Air Trampoline Park franchisee must spend a minimum amount on advertising and promotion within their territory. This "Individual Advertising Expense" is the greater of 2% of the Gross Revenues for the preceding month or $5,000 per month.
This means that even if a Big Air Trampoline Park location has low revenue, the franchisee is still obligated to spend at least $5,000 each month on local advertising. If the Gross Revenues increase, the advertising expenditure will also increase to maintain the 2% threshold.
Franchisees can receive credit towards this advertising expense for contributions made to a Local Advertising Cooperative, up to a maximum of 2% of Gross Revenues. However, certain expenditures, such as employee salaries or in-store materials, do not qualify as local advertising unless approved in advance by Big Air Trampoline Park. This ensures that advertising funds are used effectively to promote the Big Air Trampoline Park business within the designated territory.