What is the purpose of a Local Advertising Cooperative for Big Air Trampoline Park franchisees?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
We also may designate any geographic area in which two or more Big Air Trampoline Facilities are located as a region for establishing a local advertising cooperative ("Cooperative"). The members of the Cooperative for any area will consist of all Big Air Trampoline Facilities, whether franchised or operated by us or our Affiliates. We anticipate that Big Air Trampoline Facilities operated by us or our affiliates that are members of a Cooperative will contribute to the Cooperative. We will determine in advance how each Cooperative will be organized and governed and when it must start operation. Each Cooperative will be organized for the sole purpose of administering advertising programs and developing, subject to our approval, promotional materials for use by the members in local advertising. If a Cooperative has been established for a geographic area where your Big Air Trampoline Facility is located when the Franchise Agreement is signed, or if any Cooperative is established during the term of the Franchise Agreement, you must become a member of the Cooperative and abide by the rules of the Cooperative. We reserve the right to form, change, dissolve or merge any Cooperative.
If we establish a Cooperative for your area, you must contribute to the Cooperative the amounts required by its governing documents. Your contributions to the Cooperative, if any, will be credited against your Individual Advertising Expense obligation, up to 2% of your Gross Revenues during any month. All contributions to the Cooperative will be maintained and administered in accordance with the documents governing the Cooperative. The Cooperative will be operated solely as a conduit for collecting and spending cooperative fees for the purposes outlined above. The Cooperative may not use any advertising or promotional plans or materials without our prior approval.
The amount of contribution will be determined by the members of the Cooperative, subject to our approval. We anticipate that each member will have one vote for each Big Air Trampoline Facility operated by the member within the geographic area subject to the Cooperative. The members of each Cooperative will decide contribution rates, waivers and exceptions. If the members cannot agree, the Cooperative will refer the disagreement to us to resolve. Each Cooperative will have to prepare an annual financial statement reporting its expenditures for the previous year to its members. If a Cooperative is established, we will provide you with a copy of the governing documents.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 26–34)
What This Means (2025 FDD)
According to the 2025 FDD, Big Air Trampoline Park may establish Local Advertising Cooperatives in geographic areas where two or more Big Air Trampoline Park locations exist, including those franchised or operated by the company. These cooperatives are designed to administer advertising programs and develop promotional materials for local advertising, subject to Big Air Trampoline Park's approval. If a cooperative is established in a franchisee's area, membership is mandatory.
Franchisees are required to contribute to the Cooperative as determined by its governing documents. These contributions are credited against the franchisee's Individual Advertising Expense obligation, up to 2% of their Gross Revenues per month. All funds are managed according to the Cooperative's governing documents and used solely for the outlined purposes. The Cooperative acts as a conduit for collecting and spending cooperative fees.
The contribution amount is decided by the Cooperative members, subject to Big Air Trampoline Park's approval, with each member typically having one vote per Big Air Trampoline Park location they operate within the Cooperative's area. Members decide on contribution rates, waivers, and exceptions, but unresolved disagreements are referred to Big Air Trampoline Park for resolution. Each Cooperative must prepare an annual financial statement detailing its expenditures for the previous year, which is provided to its members. Franchisees will receive a copy of the governing documents if a Cooperative is established.