Who is responsible for the costs of participating in promotional campaigns for a Big Air Trampoline Park franchise?
Big_Air_Trampoline_Park Franchise · 2025 FDDAnswer from 2025 FDD Document
ovement. Franchisor, at its discretion, may make application for and own copyrights, patents, trade names, trademarks and service marks relating to any such Improvement and Franchisee shall cooperate with Franchisor in securing such rights. Franchisor may also consider such Improvements as the property and Trade Secrets of Franchisor. In return, Franchisor shall authorize Franchisee to utilize any Improvement that may be developed by other franchisees and is authorized generally for use by other franchisees.
11. ADVERTISING AND PROMOTION
11.1 Franchisee acknowledges that local advertising is required to advise the public of the Big Air Trampoline Business. For the first 30 days prior to Franchisee's Projected Opening Date ("Start-Up Advertising and Promotions Period") and continuing through 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 a Local Advertising Cooperative in accordance with Section 11.10. Expenditures that Franchisee incurs for any of the following shall not qualify as local advertising for purposes of this Section 11.1, unless approved in advance by Franchisor: (a) salaries, expenses or benefits of any employees of Franchisee, including expense for attendance at advertising meetings or activities; (b) in-store materials consisting of furniture or equipment; or (c) seminar and educational costs and expenses of Franchisee's employees. Franchisee shall also be responsible for paying its pro rata share of a classified directory listing and/or Yellow Pages advertisement to be placed by Franchisor, or at Franchisor's option, Franchisee or the Local Advertising Cooperative, on behalf of all Big Air Trampoline Facilities in the market. If Franchisee operates the only Big Air Trampoline Facility in the market, Franchisee shall be responsible for full payment of the classified directory advertising. Franchisee shall be entitled to apply any payment made for classified directory advertising toward Franchisee's Individual Advertising Expense obligation.
11.2 During the Term, Franchisee shall furnish Franchisor an accounting of Franchisee's previous month's expenditures for advertising and promotion on a form approved by Franchisor.
11.3 Franchisor will make available to Franchisee all advertising and promotion materials for the Big Air Trampoline Business which are used by Franchisor and other franchisees. Franchisee may not develop advertising materials for use in the Big Air Trampoline Business without Franchisor's
approval.
Source: Item 23 — RECEIPT (FDD pages 53–255)
What This Means (2025 FDD)
According to the 2025 Big Air Trampoline Park Franchise Disclosure Document, franchisees bear several responsibilities for covering promotional campaign costs. During the initial "Start-Up Advertising and Promotions Period," which spans the 30 days before the projected opening date and the 90 days after opening, franchisees must allocate $60,000 for promotional advertising, marketing, and public relations within their territory. A minimum of $10,000 of this amount must be dedicated to grand opening promotions.
Following the initial period, franchisees are obligated to spend a minimum of either 2% of the previous month's gross revenues or $5,000 per month, whichever is greater, on advertising and promotion within their territory. These expenses are termed the "Individual Advertising Expense." Franchisees can receive dollar-for-dollar credit, up to 2% of gross revenues, for contributions made to a Local Advertising Cooperative. However, certain expenditures, such as employee salaries or in-store materials, do not qualify as local advertising unless pre-approved by Big Air Trampoline Park.
Franchisees are also responsible for their pro rata share of classified directory listings or Yellow Pages advertisements placed by Big Air Trampoline Park or the Local Advertising Cooperative. Additionally, franchisees must remit 1% of their gross revenues monthly to the National Marketing and Promotions Fund, which Big Air Trampoline Park can increase to 3% with 30 days' notice. This fund is used for system-wide advertising and promotional activities, but Big Air Trampoline Park is not obligated to spend the funds specifically on the franchisee's behalf. If a franchisee operates the only Big Air Trampoline Park facility in their market, they are responsible for the full payment of classified directory advertising.