What is the range for the estimated total initial investment for a Big Air Trampoline Park franchise?

[Item 7: ESTIMATED INITIAL INVESTMENT]

These figures do not include any taxes or other permitting or licensing fees that you may pay.

You should check with your local and state governmental agencies for any taxes and other permitting and licensing fees that may be assessed.

• (17) Total Estimated Initial Investment.

These figures are estimates only.

You should review these figures carefully with a business advisor before making any decision to purchase the Big Air Trampoline Business.

You may incur additional expenses starting your Big Air Trampoline Business.

Your costs depend on several factors, including how well you follow our methods and procedures; your management skill, experience and business acumen; local economic conditions; the local market for our services; the prevailing wage rate; competition; and sales levels reached by your Big Air Trampoline Business during the initial period.

We have relied on over 42 years of experience constructing and operating activity parks and twelve years of experience in constructing and operating a Big Air Trampoline Business to compile these estimates. This is only an estimate of your initial investment and is based on our estimate of nationwide costs and market conditions prevailing as of the date of this Franchise Disclosure Document. You must bear any deviation or escalation in costs from the estimates that we have given. You should review these figures carefully with a business advisor before making any decision to purchase a franchise. Many factors that are

unique to your location can make a dramatic difference in the estimates provided. The availability and terms of financing depend on several factors, including the availability of financing generally, your creditworthiness, collateral you may have and lending policies of financial institutions.

[Item 7: ESTIMATED INITIAL INVESTMENT]

They do not include the costs of any necessary site development or site engineering work, nor do they include capitalized costs of rent or other occupancy costs, over either the life of the lease or the life of your investment.

These estimates assume that the landlord will provide a "vanilla shell" space which, at a minimum, includes concrete floors, demised exterior walls, HVAC, roof, and utilities stubbed to the premises sufficient for a Big Air Trampoline Facility.

In addition, these amounts do not reflect costs for the purchase of unimproved land and construction of a freestanding Big Air Trampoline Facility, which also would result in a significantly greater initial investment.

This estimate does not include any tenant improvement allowance you may receive from the landlord for your Big Air Trampoline Facility.

These costs could be substantially higher in certain markets.

You should carefully investigate all of these costs in the area where you wish to establish your Big Air Trampoline Facility.

• (9) Furniture, Fixtures and Equipment.

This estimate includes the cost to purchase trampolines, concession equipment, attractions, safety equipment and to outfit your party rooms and office.

Much of this cost may be covered by an equipment lease.

• (10) ASTM Inspection.

We require you to have an inspection conducted prior to opening your Big Air Trampoline Facility to assess the installation, safety and maintenance of your equipment.

The inspection will be conducted by a third party attraction inspector.

We estimate this inspection will cost approximately $2,500

• (11) Exterior Signage.

You must purchase our approved exterior sign for the front of your Big Air Trampoline Facility.

We will provide you with the specifications that must be followed.

The

average cost for an exterior sign ranges between $20,000 and $40,000, depending on the size of the sign and the requirements of the landlord.

• (12) Computer Hardware and Software.

The estimated initial investment includes costs related to the purchase of specified computer hardware and software for custom designated admissions and surveillance system.

The surveillance system cost of $40,000 included in this estimate applies to new parks for the initial purchase of equipment.

Additionally, you will pay $3,500 annually directly to the CCTV camera storage company designated by us.

[Item 7: ESTIMATED INITIAL INVESTMENT]

Notes:

• (1) Expenses. The high and low ranges in the table are based on an average Big Air Trampoline Business. All fees imposed by us are non-refundable unless otherwise noted. Fees and expenses paid to vendors or other third parties may or may not be refundable depending on the arrangements you make with them. We do not offer, either directly or indirectly, financing of the initial investment.

• (2) Multi-Unit Development Fee. The minimum Multi-Unit Development Fee payable to us is $22,500 for the right to develop 2 Big Air Trampoline Facilities. This fee will be higher if you are granted the right to develop a greater number of Big Air Trampoline Facilities. See ITEM 5 for additional information on the Multi-Unit Development Fee.

• (3) Initial Franchise Fee. You will sign the Franchise Agreement for the first Big Air Trampoline Facility to be developed and pay the Initial Franchise Fee of $50,000 at the same time you sign the Multi-Unit Development Agreement and pay the Multi-Unit Development Agreement. The Initial Franchise Fee payable to us is described in ITEM 5.

• (4) Training Fee. The Training Fee is $10,000 for each Big Air Trampoline Facility you open. The Training Fee is due when you sign the Franchise Agreement and is non-refundable once paid.

• (5) Travel and Living Expenses While Training.

We provide training at our location in Ladera Ranch, California or at another location designated by us and on-site training.

You must pay for airfare, meals, transportation costs, salaries, benefits, lodging and incidental expenses for all training program attendees and for airfare, meals, transportation costs and lodging for our representative to provide the on-site training.

The low end of the range assumes You live in Laguna Hills, California and will travel home each night.

The high end of the range assumes You will travel to Laguna Hills, California.

• (6) Real Estate Leasing.

If you do not own adequate space, you must lease space for your Big Air Trampoline Facility.

Generally, this will require that you pay the first and the last month's rent, plus a security deposit, at the time you sign the Lease.

[Item 7: ESTIMATED INITIAL INVESTMENT]

These costs could be substantially higher in certain markets.

You should carefully investigate all of these costs in the area where you wish to establish your Big Air Trampoline Facility.

• (8) Furniture, Fixtures and Equipment.

This estimate includes the cost to purchase trampolines, concession equipment, attractions, safety equipment and to outfit your party rooms and office.

Much of this cost may be covered by an equipment lease.

• (9) ASTM Inspection.

We require you to have an inspection conducted prior to opening your Big Air Trampoline Facility to assess the installation, safety and maintenance of your equipment.

The inspection will be conducted by a third party attraction inspector.

We estimate this inspection will cost approximately $2,500.

• (10) Exterior Signage.

You must purchase our approved exterior sign for the front of your Big Air Trampoline Facility.

We will provide you with the specifications that must be followed.

The average cost for an exterior sign ranges between $20,000 and $40,000, depending on the size of the sign and the requirements of the landlord.

• (11) Computer Hardware and Software.

The estimated initial investment includes costs related to the purchase of specified computer hardware and software for custom designated admissions and surveillance system.

The surveillance system cost of $40,000 included in this estimate applies to new parks for the initial purchase of equipment.

Additionally, you will pay $3,500 annually directly to the CCTV camera storage company designated by us.

You must also provide us with electronic access to certain daily information.

• (12) Inventory, Supplies.

Your initial inventory, supplies, and small safety equipment will typically include concession inventory, event supplies, paper products, birthday gift and celebration items, serving utensils, and other materials used in the Big Air Trampoline Business.

We have the right to change the inventory, supplies, and small safety equipment requirements at any time.

• (13) Start-Up Advertising and Promotions Expense.

You must spend at least $60,000 on advertising, promotions, social media and public relations efforts starting 30 days before you open your Big Air Trampoline Facility and continuing through the first 90 days after your Big Air Trampoline Facility is open.

[Item 7: ESTIMATED INITIAL INVESTMENT]

• (15) Additional Funds. This is for budgeting purposes only to account for unanticipated expenses. This amount includes estimated operating expenses you should expect to incur during the first three months of operations, not including any revenue generated by your Big Air Trampoline Business. It includes Working Capital, Royalties, National Marketing and Promotions Fees, POS licensing fees Technology Support Fees, advertising, payroll costs, deposits, fees for city, state and local business licenses, business entity organization expenses, other prepaid expenses, accounting and professional fees, real estate leasing costs that may be payable during the first three months of operation, and other operational expenses. These figures do not include any taxes or other permitting or licensing fees that you may pay. You should check with your local and state governmental agencies for any taxes and other permitting or licensing fees that may be assessed. In estimating the amount of additional funds, we relied on our management's over 30 years of experience in constructing and operating activity parks and three years of experience in constructing and operating a Big Air Trampoline Business.
• (16) Total Estimated Initial Investment. These figures are estimates only. You should review these figures carefully with a business advisor before making any decision to purchase the Big Air Trampoline Business. You may incur additional expenses starting your Big Air Trampoline Business. Your costs depend on several factors, including how well you follow our methods and procedures; your management skill, experience and business acumen; local economic conditions; the local market for our services; the prevailing wage rate; competition; and sales levels reached by your Big Air Trampoline Business during the initial period.

Neither Big Air Trampoline nor any agent or Affiliate of ours offers direct or indirect financing. We do not guarantee your note, lease or obligation.

YOUR ESTIMATED INITIAL INVESTMENT MULTI-UNIT DEVELOPMENT

(For the right to develop 2 Big Air Trampoline Facilities)

[Item 7: ESTIMATED INITIAL INVESTMENT]

Notes:

• (1) Expenses.

The high and low ranges in the table are based on an average Big Air Trampoline Business.

All fees imposed by us are non-refundable unless otherwise noted.

Fees and expenses paid to vendors or other third parties may or may not be refundable depending on the arrangements you make with them.

Neither Big Air Trampoline nor any agent or Affiliate of ours offers direct or indirect financing of your initial investment.

We do no guarantee your note, lease or obligation.

• (2) Initial Franchise Fee.

The Initial Franchisee Fee payable to us is described in ITEM 5.

• (3) Training Fee.

The Training Fee is described in ITEM 5.

• (4) Travel and Living Expenses While Training.

We provide training at our location in Laguna Hills, California or at another location designated by us and on-site training.

You must pay for airfare, meals, transportation costs, salaries, benefits, lodging and incidental expenses for all training program attendees and for airfare, meals, transportation costs and lodging for our representative to provide the on-site training.

The low end of the range assumes You live in Laguna Hills, California and will travel home each night.

The high end of the range assumes You will travel to Laguna Hills, California.

• (5) Real Estate Leasing.

If you do not own adequate space, you must lease space for your Big Air Trampoline Facility.

Generally, this will require that you pay the first and the last month's rent, plus a security deposit, at the time you sign the Lease.

Big Air Trampoline Facilities are generally located in light industrial areas, retail areas, strip malls, freestanding buildings and major retail malls.

The typical size of a Big Air Trampoline Facility is 25,000 to 40,000 square feet, but in some cases, franchisees have elected to, or been required to, take significantly more square footage.

We reserve the right to deny approval to your proposed Big Air Trampoline Facility if we deem it too large or too small, in our sole discretion.

[Item 7: ESTIMATED INITIAL INVESTMENT]

You must spend at least $60,000 on advertising, promotions, social media and public relations efforts starting 30 days before you open your Big Air Trampoline Facility and continuing through the first 90 days after your Big Air Trampoline Facility is open.

You should plan to spend at least $10,000 of this Start-Up Advertising and Promotions Expense on a grand opening event.

• (14) Pre-Opening Costs and Expenses.

These amounts represent our best estimate of the range of costs involved in the "pre-opening" category.

They reflect the expenses, before opening, of payroll and benefit costs, startup insurance, travel, moving, hiring, conducting background checks on you and your employees, uniforms, and training materials for your hourly and salaried employees, supplies, various printed media materials, and miscellaneous set up costs for cable, internet service and telephone.

[Item 7: ESTIMATED INITIAL INVESTMENT]

The surveillance system cost of $40,000 included in this estimate applies to new parks for the initial purchase of equipment.

Additionally, you will pay $3,500 annually directly to the CCTV camera storage company designated by us.

You must also provide us with electronic access to certain daily information.

• (13) Inventory, Supplies.

Your initial inventory, supplies, and small safety equipment will typically include concession inventory, event supplies, paper products, birthday gift and celebration items, serving utensils, and other materials used in the Big Air Trampoline Business.

We have the right to change the inventory, supplies, and small safety equipment requirements at any time.

• (14) Start-Up Advertising and Promotions Expense.

You must spend at least $60,000 on advertising, promotions, social media and public relations efforts starting 30 days before you open your Big Air Trampoline Facility and continuing through the first 90 days after your Big Air Trampoline Facility is open.

You should plan to spend at least $10,000 of this Start-Up Advertising and Promotions Expense on a gran

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–22)