When does the Individual Advertising Expense obligation begin for a Big Air Trampoline Park franchise?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty † (1) | 6% of Gross Revenue per month | Payable monthly on or before the 10th of each month | We reserve the right to require you to pay your Royalty on a more frequent basis, including weekly. |
| Individual Advertising Expense (2) | The greater of 2% of Gross Revenue or $5,000 per month (“Minimum Individual Advertising Expense”) | Payable monthly, at time set by you, after the first 60 days of operation | You must spend the greater of 2% of Gross Revenue or a minimum of $5,000 on local marketing efforts every month |
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, the Individual Advertising Expense obligation begins after the first 60 days of operation. The franchisee is required to spend the greater of 2% of Gross Revenue or $5,000 per month on local marketing efforts. This expense is payable monthly at a time set by the franchisee.
This requirement ensures that each Big Air Trampoline Park location actively promotes its business within its local market. By mandating a minimum spending level, Big Air Trampoline Park aims to maintain brand visibility and attract customers. The flexibility in setting the payment date allows franchisees to align their advertising expenses with their cash flow.
It's important to note that this is an ongoing monthly expense, and franchisees should factor this into their financial projections. The actual amount spent on advertising could be higher than $5,000 if 2% of the Gross Revenue exceeds that amount. Franchisees should also be aware of the potential for Local Advertising Cooperatives, which could influence how these advertising funds are spent, although none are established as of the FDD date.