When is the Multi-Unit Development Fee due for a Big Air Trampoline Park franchise, and to whom is it paid?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure (1) | Low Amount | High Amount | Method | When Due | To Whom |
|---|---|---|---|---|---|
| of Payment | Payment is Made | ||||
| Multi-Unit Development Fee (2) | $22,500 | $22,500 | Lump sum | Upon signing the Multi-Unit Development Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–22)
What This Means (2025 FDD)
According to Big Air Trampoline Park's 2025 Franchise Disclosure Document, the Multi-Unit Development Fee is due upon signing the Multi-Unit Development Agreement. The fee is paid to Big Air Trampoline Park, referred to as "Us" in the document. The minimum Multi-Unit Development Fee is $22,500 for the right to develop two Big Air Trampoline Park facilities; this fee increases if the franchisee is granted the right to develop more facilities.
For a prospective franchisee, this means that if they plan to open multiple Big Air Trampoline Park locations, they will need to pay the Multi-Unit Development Fee upfront when they sign the agreement. This fee grants them the rights to develop the agreed-upon number of locations. It's important to note that this fee is in addition to the initial franchise fee for the first location, which is also due upon signing the Franchise Agreement.
Multi-unit development fees are common in franchising as they secure the rights for a franchisee to expand within a specific territory. The initial investment table in Item 7 of the FDD provides a clear breakdown of when each fee is due and to whom it is payable, allowing potential franchisees to understand the financial obligations at each stage of the process. Franchisees should carefully consider the number of units they plan to develop to determine the appropriate Multi-Unit Development Fee, as this initial investment can be significant.